Tesla is no longer the world’s foremost electric vehicle maker — a decline in last-year’s sales, disclosed on Friday, has left it second fiddle to China’s BYD. But cars aren’t the only territory Elon Musk’s company is attempting to stake out. For big batteries, Tesla may be able to put up a stronger fight.
Chinese battery makers have one major advantage: their products get cheaper every year. That’s helped them lap competitors in supplying power sources for electric vehicles: the country produces 75 per cent of the world’s lithium-ion batteries. Then there are the huge rechargeable batteries used by electricity grids. Chinese giants such as CATL have also made inroads there, but their position is not unassailable.
Energy storage systems are becoming a critical part of renewable power rollouts as solar and wind adoption grows. They store electricity when there is excess power on sunny or windy days, and grids increasingly depend on such batteries to stabilise frequency.