The push for energy storage capacity to be installed as part of solar projects in China could earn battery manufacturer Xinyi Electric Storage a near-RMB205 million ($31.3 million) windfall from two of its sister companies.
The battery business, which also offers an auto glass repair and replacement service, is set to ask its shareholders to approve a three-year deal to supply float glass manufacturer Xinyi Glass and PV glassmaker Xinyi Solar with lithium batteries and related products.
Under the terms of the sales agreement, Xinyi Electric Storage–whose investors own 59.72% of Xinyi Glass plus 25.97% of the Xinyi Solar business controlled by Xinyi Glass–would sell up to RMB30 million ($4.58 million) worth of batteries to Xinyi Solar for use alongside its PV project portfolio this year, with up to RMB82 million and RMB74 million worth of business to follow in the next two years.
Xinyi Glass which, like Xinyi Solar, wants to replace lead-acid batteries in its production operations, would sign up for RMB7.5 million ($1.15 million) of products this year and then RMB6 million and RMB5 million, if the sales agreements are approved.
With the lithium-battery unit prices to be determined on a case by case basis, Xinyi Electric Storage said it would publish details of when and where the shareholder vote will be held by April 29.
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