Recently, DeYe Co., Ltd. (605117. SH) announced that the company plans to invest 1.112 billion yuan to build a 7GWh industrial and commercial energy storage (referred to as "industrial and commercial storage") production line project. The project is located in Cixi City, Zhejiang Province, and is planned to be constructed and put into operation in stages. This move marks DeYe Group's further expansion of its production capacity layout in the core business field of energy storage, strengthening its competitive advantage in the global industrial and commercial storage market.

According to the announcement, the project will focus on the research and development, production, and manufacturing of industrial and commercial energy storage battery packs, energy storage inverters (PCS), and integrated energy storage systems. After completion, it will form an annual supply capacity of 7GWh of industrial and commercial energy storage products, mainly targeting mainstream overseas energy storage markets and domestic industrial and commercial energy storage incremental markets. The project construction period is expected to be 24 months and will be implemented in two phases: the first phase will first form a production capacity of 3.5 GWh and is expected to be officially put into operation in the first half of 2025; The second phase of 3.5GWh production capacity will be launched in a timely manner according to market demand. After reaching full capacity, it is expected that the annual sales revenue will exceed 5 billion yuan, becoming the company's new performance growth engine.

As one of the leading enterprises in the domestic energy storage industry, DeYe Co., Ltd. has been continuously making efforts in the industrial and commercial energy storage field in recent years, relying on its technological accumulation in photovoltaic inverters, energy storage system integration, and other fields. This large investment is not only a capacity supplement to the company's existing energy storage business, but also a strategic response to the explosive growth of the global industrial and commercial storage market. Data shows that the global installed capacity of industrial and commercial storage will increase by over 80% year-on-year in 2023. Overseas regions such as Europe, the Middle East, and Southeast Asia have become the core incremental areas of the industrial and commercial storage market due to urgent energy transformation needs. Meanwhile, with the widening gap between peak and valley electricity prices and the increasing demand for cost reduction from industrial and commercial users in China, the industrial and commercial storage market has also entered a period of rapid expansion.

At the technical level, the production line invested and built by DeYe Corporation will adopt industry-leading automated production equipment and intelligent management systems, with a focus on improving product safety, stability, and cost control capabilities. The company's independently developed high rate energy storage battery pack, efficient PCS module, and intelligent operation and maintenance platform will achieve full lifecycle optimization of the energy storage system, which can meet the diversified needs of industrial and commercial users such as peak shaving, backup power supply, and demand response. In addition, relying on the company's established global marketing network, the products produced by the new project will quickly cover key overseas markets, further enhancing DeYe's market share in the global energy storage market.

The relevant person in charge of DeYe Stock stated that the investment and construction of the 7GWh industrial and commercial storage production line project is an important measure for the company to implement the strategy of "deepening the energy storage track and expanding the global market". In the future, the company will continue to increase its research and development investment, promote the iterative upgrading of energy storage technology, and flexibly adjust its production capacity layout according to market demand, striving to occupy a more advantageous position in the global industrial and commercial energy storage market competition and create sustained and stable returns for shareholders.

Industry insiders analyze that with the acceleration of global energy structure transformation, industrial and commercial energy storage, as an important component of flexible power supply, will continue to have strong market demand. DeYe Corporation's increase in production capacity not only meets its own order growth needs, but also utilizes economies of scale to reduce production costs, enhance product competitiveness, and lay a solid foundation for the company's long-term development in the energy storage industry.Editor/Bian Wenjun