Rolls-Royce, a British provider of power and propulsion solutions, has announced a strategic partnership with Chinese battery manufacturer Contemporary Amperex Technology Co Ltd (CATL) to introduce CATL’s new TENER product line in the European Union and the United Kingdom.
The collaboration is seen as a strategic move to capitalize on the growing market for power storage systems in Europe, driven by the rapid development of renewable energies. It also signifies a deeper level of cooperation between China and Europe in manufacturing, moving beyond traditional sales, to mitigate risks arising from geopolitical tensions and trade conflicts.
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CATL’s TENER is touted as the world’s first energy storage system with zero degradation in the initial five years of use, boasting a capacity of 6.25 megawatt-hours and designed for mass production.
Rolls-Royce has already integrated TENER products into its mtu EnergyPack QG solution for large-scale energy storage, primarily targeting grid operators. The partnership also includes potential developments of innovative smart products leveraging Rolls-Royce’s mtu EnergetIQ intelligent automation solution, mtu Go! digital platform, as well as CATL’s intelligent diagnostic platform and battery management system.
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According to Rolls-Royce, this partnership enhances both companies’ capabilities to undertake large and complex grid-scale battery energy storage system projects, underscoring the strategic focus and growth potential of battery storage systems for its Power Systems division.
Large energy storage systems play a crucial role in integrating renewable energy sources into the grid, enhancing stability and reliability, and enabling customers to benefit from the latest grid and trading services. This supports the energy transition by fostering a more sustainable energy infrastructure, Rolls-Royce noted.
Last year, Rolls-Royce and CATL signed a long-term supply agreement to collaborate on over 10 gigawatt-hours of storage capacity.
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Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University, highlighted the importance of energy storage systems in enabling the uptake of new energy into the grid, noting China’s advanced technology and production capabilities in the sector can meet the significant market needs in Europe.
Alex Zhu, energy, infrastructure advisory, and carbon neutrality leader at Ernst & Young (China), emphasized the importance of Chinese energy companies forming strong collaborative ties with local producers in foreign markets to ensure sustainable market entry and growth strategies.
