ESS HGVs
We have commented on the rapid roll out of energy storage systems (ESS) in China in recent dailies. We have also covered the rapid growth in Chinese EV & PHEV penetration.
The Gulf conflict, and the consequent elevation in petrol and (especially) diesel prices, is focussing minds in the Chinese HGV industry. Heavy Goods Vehicles are huge users of diesel.
HGV battery powered vehicles are not new, but the latest generation of HGV batteries can provide 500 ampere-hours. Last year the largest HGV battery available was circa 345 ampere-hours. The battery is typically one fifth of the cost of the vehicle.
BloombergNEF predict that battery demand across buses, vans, HGVs and ESS will climb to around 1.2 terawatt-hours over the next three or four years.
This plays nicely into portfolio holding, CATL, the largest battery manufacturer with a near one third global market share, who recently announced a $4.4bn investment in an upstream subsidiary to expand its footprint in critical minerals and strengthen supply-chain security.
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