Latest Update in the SMM Market

[SMM Analysis]Summarizing the three articles in this series, the author believes that around 70% of U.S. tariffs on China may be a theoretical equilibrium level. If the tariffs are below around 70%, China's LFP energy storage cells still have a price advantage over those produced by the U.S. on its own production lines. If the tariffs are above around 70%, it would be more advantageous for the U.S. to produce LFP energy storage cells locally. However, assuming that the transshipment trade channel is not completely blocked, transshipment trade remains the most economical way of trade.

[SMM Analysis]This article aims to analyze the price impact of energy storage cells produced in China and exported directly, transshipped via Malaysia, and locally produced in the US from August 13 to January 1, 2026. Some of the data used are theoretical, which may make the results appear on the higher side. The author will try to explain the reasons for each data point in detail so that readers can replace the relevant data to obtain more targeted conclusions. The third article in this series will focus on the price impact caused by tariffs after January 1, 2026.

[SMM Analysis]This article is the first in the series, aiming to analyze the price impact of Chinese-produced energy storage cells exported directly, transshipped via Malaysia, and the hypothetical scenario of local production of lithium iron phosphate (LFP) energy storage cells in the US, from May 14 to August 13. Some of the data used are theoretical, which may make the results appear on the higher side. The author will explain the reasons for each data point in detail to allow readers to replace the relevant data and obtain more targeted conclusions. Follow-up articles (II) and (III) will analyze the price impact due to different tariffs at subsequent time points.

[SMM Analysis] Spanish renewable energy company Grenergy plans to invest 3.5 billion euros in battery energy storage systems (BESS) and PV-ESS projects by 2027, a move that will drive significant growth for the company in the energy sector.

On February 9, China’s National Development and Reform Commission (NDRC) and National Energy Agency (NEA) jointly published the Notice on Deepening Market-Based Reform of Renewable Energy On-Grid Tariffs to Promote High-Quality Renewable Energy Development.

On May 7, CATL launched the TENER Stack at the EES Europe in Munich, marking the unveiling of the world's first mass-producible 9MWh ultra-large-capacity energy storage system solution.

Polaris ESS Network learned that recently, the EPC tenders for two shared ESS projects in Yunnan were opened, with a total scale of 350MW/700MWh and an average quoted price of approximately 0.758 yuan/Wh. Among them, Yunnan Institute of China Energy Engineering Group won the EPC bid for the 150MW/300MWh ESS power station of China Energy Investment Corporation in Binglie, Wenshan City, at a price of 0.7627 yuan/Wh, while Shanghai Institute of PowerChina won the EPC bid for the 200MW/400MWh shared ESS project of Shenzhen Energy Group in Jinghong, at a price of 0.7505 yuan/Wh.