Huawei to compete with Tesla for Japanese electricity storage market

Huawei aims to supply large modules for storing electricity in Japan, Nikkei reported.

Huawei, which is under US sanctions, intends to purchase battery packs from various manufacturers, including Contemporary Amperex Technology (CATL). Then, the blocks will combine into modules with a capacity of 2000 kW/h.

In Japan, Huawei will also have to compete with US giant Tesla. It has already started shipping similar modules to the country in 2021. Both companies are already supplying small household batteries with a capacity of 10 kWh to Japan.

The appearance of such prominent players on the Japanese market poses a threat to local manufacturers.

Batteries must store energy obtained from renewable sources such as solar and wind. According to research by Fuji Keizai, the Japanese electricity storage battery market will grow from $146 million in 2020 to $400 million in 2030.

Japan also aims to increase energy consumption from renewable sources to 36-38% by 2030.