Chinese battery manufacturer CATL expects energy storage solutions to account for 50% of its global sales by 2030, up from around 25% currently, according to Reuters.

Kevin Tang, CATL’s Director of Energy Storage Systems for Europe, noted that the energy storage segment has expanded rapidly, rising from just 2% of the company’s battery sales five years ago.

While CATL remains primarily focused on lithium-ion batteries for electric vehicles, which currently generate about three-quarters of its revenue, growing demand for renewable energy integration is driving demand in battery storage applications.

“Once we have more renewable energy, we need energy storage,” Tang said on the sidelines of the International Photovoltaic Power Generation and Smart Energy Conference & Exhibition ​in Shanghai, the world’s largest solar conference.

In Europe, CATL’s third-largest energy storage market after China and ​the US, customers are investing in both renewables plus storage and grid-side storage, depending on where the congestion points ‌in ⁠local power grids are, he said.

Tang also highlighted concerns over rising raw material prices, including lithium, copper, and aluminum, which have increased following the US-Israel war on Iran. However, he said costs are expected to decline over the longer term as battery supply chains continue to mature.

CATL, founded in 2011, has expanded its global manufacturing footprint with battery plants in Germany and Hungary and is developing a new plant in Spain through a joint venture with Stellantis. 

The company also operates lithium mines in southern China and operates the world’s largest battery recycling plant for the recovery of the ​raw materials used in batteries.