Chinese Energy Storage Firms Consider Investing Hundreds of Millions of Dollars in Vietnam

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8th june 2023 – (Hanoi) Two Chinese energy storage system and battery manufacturers are reportedly considering investing hundreds of millions of dollars in Vietnam. The total value of the investments could exceed $1 billion, according to one source with direct knowledge of the discussions. The companies are seeking to take advantage of Vietnam’s free trade deals and low labor costs.

Xiamen Hithium Energy Storage Technology, a startup that is expanding its presence in Europe and the United States, is said to have approached officials and industry managers in Vietnam to potentially invest up to $900 million to build a plant on more than 30 hectares of industrial land.

A second Chinese energy storage firm, Growatt New Energy, which currently leases a pre-fabricated plant in Vietnam, is reportedly planning to spend about $300 million to acquire about 15 hectares of industrial land in order to build a new factory.

Vietnam is a growing market for renewable energy, as its economy grapples with frequent power cuts due to increasing demand, climate change, and a weak power grid. However, Vietnam has yet to pass legislation that would permit the use of energy storage facilities to strengthen its power network.

Hithium specializes in manufacturing stationary energy storage products, including cells and larger containers that help manage the intermittent supply of energy from solar or wind farms. The global stationary energy storage market is estimated to be worth roughly $224 billion by the end of the decade, up from just over $31 billion in 2021, according to Precedence Research. Major companies in the market include Tesla, Panasonic, and Philips.