Lithium-ion energy storage system provider NEC Energy Solutions— the US subsidiary of Japan’s NEC Corp— is set to wind down operations.
The Massachusetts-based company is set to ‘orderly wind down’ by not seeking new business, but will finish projects under development, according to reports by media company Bloomberg.
NEC had not replied to BEST‘s questions at the time of publication.
According to Bloomberg, NEC Corp had been trying to sell the business but the COVID-19 pandemic had made finding a buyer difficult.
Steve Fludder has resigned from NEC Energy Solutions and will be replaced as chief executive officer by Mark Lymbery.
Logan Goldie-Scot, head of clean-power research at BloombergNEF, said many of the businesses that need big batteries, such as developers of solar plants and wind farms, had been building up their own capacity to install them, which had forced integrators such as NEC to find buyers or partners to survive.
NEC’s contracts for battery maintenance expire in 2030, at which point it will formally close, a spokesman for the parent corporation in Tokyo told Bloomberg.
NEC Energy Solutions was established in 2014.