Mideast War Drives Surge in Global Demand for Chinese Renewables, Insiders Say
Cheng Cheng
DATE:  2 hours ago
/ SOURCE:  Yicai
Mideast War Drives Surge in Global Demand for Chinese Renewables, Insiders Say Mideast War Drives Surge in Global Demand for Chinese Renewables, Insiders Say

(Yicai) April 22 -- Overseas buyers' interest in Chinese green energy products has surged amid energy price spikes caused by the war in the Middle East, according to industry insiders.

Batteries are no longer something customers "want" but something they "must have," He Xiaozhu, an international sales engineer at Chinese lithium-ion battery maker Lithtech Energy, told Yicai at this year's spring leg of the bi-annual China Import and Export Fair, better known as the Canton Fair.

Global demand for lithium and semi-solid-state batteries has exploded since early last month, with working overtime to speed up deliveries becoming common practice across the industry, He noted. Lithtech is even arranging deliveries to clients in Iraq, where shipping routes remain disrupted, by routing vessels around the Strait of Hormuz, she added.

Amid the ongoing Mideast crisis, soaring oil prices, and energy supply disruptions, overseas buyers view green energy equipment not merely as a necessity for transition but as critical for security and survival. This has driven robust growth in China's exports of solar products, batteries, and electric vehicles.

Following the Chinese government's cancellation of the value-added tax export rebates for photovoltaic products effective April 1, the reduction in VAT export rebates for lithium batteries, with a complete phase-out scheduled starting Jan. 1 next year, and rising civil construction costs, export prices for PV and energy storage products surged recently, many suppliers said to Yicai. However, overseas demand remains strong, they pointed out.

Orders for the home energy storage systems of Zhangzhou Huawei Power Supply Technology have surged 50 percent to 60 percent since last month, with notable growth from Europe and the Middle East, said Yuan Fukang, project director of the battery supplier's new energy division. After prices went up, customers began paying more attention to the lifecycle and supply stability of lithium batteries, Yuan added.

Shandong Lanjing Yitan New Energy, a supplier of PV lighting and energy storage equipment, raised prices by more than 10 percent, but customers had built expectations and accepted the hikes, noted Marketing Director Liu Jing.

Taiqifeng Electronics' hybrid solar inverters, which can serve as emergency power supplies for post-disaster reconstruction, have received many inquiries from Middle Eastern countries at the fair, Fu Siwen, foreign trade director at the Guangdong province-based company, told Yicai. Although no deals have been penned yet due to logistics bottlenecks, demand prospects look optimistic, with orders expected to jump at least 50 percent, Fu noted.

The large-scale deployment of PV gear overseas has also spurred demand for supporting services, with many exhibitors at the Canton Fair saying interest in solar panel cleaning drones and site mowing robots has been strong.

SaData Robotics' mowing robots are designed to clear weeds under solar panels, not only cutting labor costs but also avoiding accidents such as workers being bitten by snakes or tool-related injuries, Shan Chaoqun, deputy general manager of the firm, said to Yicai.

Editors: Tang Shihua, Martin Kadiev

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Keywords:   Rising Demand,Green Energy Equipment,Geopolitical Conflicts,Middle East Conflicts,Rising Energy Cost,Canton Fair