CATL signs contract with Schneider Electric specifically to attack lead battery industry

CATL signs contract with Schneider Electric specifically to attack lead battery industry

CATL signs contract with Schneider Electric specifically to attack lead battery industry 150 150 Batteries International

August 13, 2020: Chinese lithium battery giant CATL — probably the largest lithium battery cell maker in the world — agreed on August 5 to work with Schneider Electric with the specific aim of replacing lead-acid batteries with lithium.

Chinese business journal 21Caijing reported a strategic partnership agreement was signed between the two at Schneider Electric’s online Innovation Summit 2020. This specified that one of its main targets was to replace lead-acid batteries with lithium-ion in new application areas, such as industrial and commercial fields and data centres.

According to market analysis firm Grand View Research, lead is holding its own in these areas with 47% of the market share, while lithium and other chemistries combined now make up 53%.

Grand View also says the lithium-based product segment should register the highest CAGR during its forecast period, 2020 to 2027, being used in numerous industrial applications, such as UPS systems, industrial automation systems and grid-level systems.

It also cites the growing demand for renewable energy to be stored in lithium battery systems.

“The two sides will cooperate in the fields of green smart factories, new energy power generation, safe electricity use and energy storage, including CATL helping Schneider Electric to replace lead-acid batteries with lithium,” according to 21Caijing.

“They will also jointly expand the emerging lithium battery application market. Schneider Electric, in return, will provide a full range of services for the planning and implementation of CATL’s green smart manufacturing projects, as well as helping the company establish advanced green smart factories.”

It also says the two firms have similar customer groups and complementary products and they will work together to create a distributed energy platform.

CATL already has a huge foothold in the EV market, in August adding Mercedes-Benz to its portfolio of OEM customers.