Samsung SDI is to form a joint venture (JV) for energy storage systems with inverter manufacturer Sungrow in China.
The JV will develop lithium-ion battery energy storage, as well as marketing and sales of its storage solutions and products. The South Korean and Chinese companies plan to establish new firm in the first half of 2015.
The two companies aim to secure a market share of 30% in the Chinese energy storage market, which is currently the biggest in the world. The market capacity of lithium-ion energy storage is expected to reach 280MWh in China by the end of this year, accounting for 20% of the world’s total.
“We will prepare gradually and step up efforts to become one of the leading ESS companies in China, which is expected to grow rapidly in the near future,” said Samsung SDI CEO Park Sang-jin.
According to Samsung SDI, the JV will to help create more synergy for its new vehicle battery production line, which is currently under construction in Xian.
Sungrow holds a 30% market share in China and is the world’s second largest solar energy inverter manufacturer.
The final agreement came about three months after the two companies inked a memorandum of understanding in August this year.