Powin Energy, a battery energy storage system (BESS) solution provider based in Oregon, USA, recently signed a purchase agreement for lithium iron phosphate (LFP) batteries with Chinese battery supplier EVE Energy, and is actively discussing future production in the United States Battery products.

EVE Energy has become a strategic battery partner of Powin Energy's stationary energy storage project. Powin Energy said that after signing a two-year G-watt-hour supply contract, LFP batteries will be used to build a battery energy storage system with an energy storage capacity of nearly 500MWh and will be delivered this year.

Powin Energy launched the Stack360E battery energy storage system earlier this year as a complement to its Stack series. The cooperation can ensure that the battery supply of Powin Energy's battery energy storage project will not be interrupted. The battery provided by the battery supplier will be compatible with the Stack series of energy storage products launched by Powin Energy last year. Powin Energy launched its high-voltage Stack360E battery energy storage system earlier this year.

Danny Lu, executive vice president of Powin Energy, said that all energy storage projects planned to be deployed are located in the United States. The company signed a multi-year supply agreement with another Chinese manufacturer, CATL, which recently expanded the scope of supply. He said that CATL is still Powin Energy's main battery supplier and can meet most of the demand.

The deal was reached after Powin Energy conducted internal and third-party audits of its new supplier’s production and quality control processes. EVE Energy will also provide ULAdvisors' bankability and technical report, which is very comprehensive and has drawn very favorable conclusions.

Danny Lu mentioned some developments in today's battery energy storage supply chain. For example, battery products may be in short supply, especially the electric vehicle (EV) market is purchasing a large number of batteries. In the EV and battery energy storage markets, current industry leaders always face the difficulty of cyclical supply restrictions.

He said: "Due to the lack of battery suppliers to supply the US battery energy storage market, it is difficult for customers of battery energy storage systems to negotiate better pricing and delivery terms." He added. Emerging suppliers in the market will supply more than 100GWh of battery products.

Powin Energy recently received more than $100 million in equity investment to advance its integrated hardware and software platform. At the same time, at the macro level, the United States is seeking to establish a domestic supply chain for lithium-ion batteries, including lithium-ion batteries for battery energy storage applications and electric vehicles. However, due to the lack of mature upstream component suppliers, it is difficult to purchase competitively priced lithium iron phosphate batteries in the United States.

Powin Energy is actively negotiating with some battery suppliers to persuade them to move production facilities to the United States or expand its current production facilities in the United States to provide more lithium iron phosphate batteries.

Lithium-ion battery (LIB) has become the main energy storage solution in modern social life. Among them, lithium iron phosphate batteries are a perfect replacement for lead-acid batteries, and they are the first choice for grid-connected peak shaving, off-grid energy storage, photovoltaic energy storage, UPS, data center and other industries.