(Yicai) Oct. 26 -- Chinese battery giant Contemporary Amperex Technology said it has inked a deal with Zhongcheng Dayou Industrial Group on an energy storage project whose total investment will reach CNY10 billion (USD1.4 billion) by 2030.

The project's energy storage capacity should be at least 3.5 gigawatt-hours by 2025, Ningde-based CATL said yesterday, noting that the two companies have set up a special working group.

Zhongcheng Dayou, a firm under state-backed Dayou Guolian Holdings Group, has laid out 'user-side plus grid-side' energy storage businesses, covering solar and energy storage, and has set up several independent energy storage power stations in China.

With highly complementary businesses, the pair will develop the project through resource integration, energy storage industry funds, and other means, said Wu Fafu, chairman of Zhongcheng Dayou.

As an important means of solving the instability of new energy, the energy storage field is promising amid China’s dual-carbon strategy and the rapid increase in the proportion and scale of new energy, according to industry insiders.

CATL's battery shipments reached around 100 GWh in the third quarter, with energy storage batteries accounting for 20 percent, it said in a report on Oct. 19. The firm is developing more integrated and more economical EnerD series batteries and is applying them across China, it noted.

Editor: Martin Kadiev