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rolls-royce, a major british provider of power and propulsion solutions, announced recently a partnership with chinese battery manufacturer contemporary amperex technology co ltd to launch catl's new tener product line in the european union and the united kingdom. experts said they view this partnership as a strategic move to capitalize on europe's expanding market for power storage systems, driven by rapid development of renewable energies. it also signifies deeper china-europe cooperation in manufacturing rather than just sales within this sector, to reduce risks from geopolitical tensions and trade conflicts, they said. catl's tener is touted by its maker as the world's first energy storage system with zero degradation in the initial five years of use, with a capacity of 6.25 megawatt-hours, that can be mass-produced. rolls-royce has already begun offering tener products as part of its mtu energypack qg solution for large-scale energy storage, primarily targeting grid operators. the new collaboration further 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. rolls-royce said this partnership strengthens both companies' capabilities to handle large and complex grid-scale battery energy storage system projects. rolls-royce also said battery storage systems are a strategic focus and an area of growth for its power systems division. large, or grid-scale, energy storage systems enable the integration of renewable energy sources, which may have intermittent or variable output depending on weather conditions, into an energy grid while enhancing stability and reliability. they also enable customers to utilize the latest grid and trading services, while supporting the energy transition by creating a more sustainable energy infrastructure, rolls-royce said. last year, rolls-royce and catl signed a long-term supply agreement to collaborate on more than 10 gigawatt-hours of storage capacity. "europe's new energy industry is growing rapidly. yet, integrating new energy into the grid presents challenges to the stability of grid operation. energy storage systems are pivotal in enabling the uptake of new energy. china's energy storage sector is advanced in technology and production, and can meet massive market needs in europe," said lin boqiang, head of the china institute for studies in energy policy at xiamen university. "for chinese power storage companies, partnering with local enterprises in overseas markets, instead of direct export, can reduce project costs and mitigate risks from geopolitical tensions and trade conflicts," he said. 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. "the focus should be on expanding value chains, sharing benefits and jointly managing risks with local enterprises. this strategic approach ensures sustainable market entry and growth strategies rather than relying solely on sales," he said. zhu highlighted the growing demand in foreign markets for localized energy production, investments, supply chains and services amid global trade uncertainties, aiming to secure supply chains and ensure timely deliveries.
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