Big things are expected from the residential energy storage market, as it positions itself to take advantage of a shift towards residential solar and a rise in demand for electric cars. Canadian energy storage company, Electrovaya, is making a name for itself as a high-quality manufacturer of lithium-ion battery modules, beating off stiff competition to secure the signing of a Letter of Intent (LOI) for an estimated EUR199 million (USD223 million) of its modules.
The deal is for a period of three years, with an Original Equipment Manufacturer, which Electrovaya describes as one of the largest and fastest growing Residential Energy Storage companies in the world. The delivery is due to begin in the fourth quarter of 2016 or for early in the first quarter of 2017.
Electrovayas lithium-ion battery modules come with integrated cells and battery management systems (iBMS), and due to the modules focus on safety and cycle life performance, they are well suited to residential energy storage.
We are very excited with this LOI, as this was achieved against intense global competition, said said Dr. Rajshekar DasGupta, VP of Business Development at Electrovaya. Our multi-cell modules with laser welded tabs, built in sensors and iBMS are an attractive product for Residential Energy Storage. This LOI further defines our path to becoming the leading supplier of lithium ion cells and batteries to this fast growing industrial sector of Residential Energy Storage.
The small-scale energy storage market is expected to take lift off in the coming years. A Bloomberg New Energy Finance (BNEF) report, released earlier this week, forecasted a market worth USD250 billion by 2040. The report expects there to be a significant drop in price for lithium-ion battery technology, as demand spikes from the spread of electric vehicles.