CATL, Octopus Energy and battery manufacturer Ampace have signed a strategic memorandum of understanding to develop smart home energy storage solutions for European households, initially targeting the UK, France and Spain.
The agreement expands cooperation between CATL and Octopus Energy beyond commercial transport into residential energy management. The companies said they will combine battery technology, energy storage systems and digital services to support household electricity management and grid flexibility.
Partners Divide Technology and Energy Management Roles
Under the agreement, CATL will provide technology and supply chain support, while Ampace will handle the research, development and manufacturing of battery cells, battery management systems (BMS) and energy storage systems.
Octopus Energy will contribute its European customer channels and energy management capabilities. These include smart dynamic tariff algorithms and access to virtual power plant (VPP) services, connecting residential storage equipment with household energy management platforms.
The three companies also plan to explore integration with rooftop solar installations, smart EV charging and vehicle-to-grid (V2G) technology.
By linking these systems, household batteries could become part of wider virtual power plants, allowing stored electricity to participate in grid dispatching when required.
CATL said the cooperation aims to lower household electricity costs while improving the flexibility and resilience of European electricity networks. The partners will also consider introducing co-branded residential energy storage products.
Ampace to Supply Battery and Storage Systems
Ampace will provide manufacturing capabilities for the project. The company is a joint venture between ATL and CATL, with business activities covering energy storage systems and batteries for micro-mobility vehicles and smart products.
Its responsibilities under the MoU include developing and producing the battery cells and storage systems needed for the planned residential solutions.
Cooperation Builds on European Battery-Swapping Plans
The latest agreement follows a separate partnership announced by CATL and Octopus Energy on June 22 to develop a battery-swapping network for heavy-duty trucks in Europe.
The two companies planned to establish a 50-50 joint venture to introduce battery-swapping technology from CATL’s Qiji Energy business to the European commercial vehicle market.
The initial demonstration stations are expected to begin operating in the UK in 2027, with deployment prioritising major highway routes and key logistics ports.
The new home energy storage initiative broadens the relationship into residential electricity markets, giving the partners potential opportunities across household batteries, renewable energy integration and grid services.