Energy storage instead of batteries
Polish production branch of LG Energy Solution recently announced that sales revenue will probably fall by about one third this year to PLN 26.5 billion. “We are considering the development of LG Energy Solution Wrocław in the direction energy storage” – Joanna Silska, a company spokeswoman, said in an email. “Energy transformation is crucial and inevitable for European economies, which is why we are examining the potential of investment in new production capacities”.
Problems with selling electric cars
The Electric Car Market in Europe collapsed due to high prices and the withdrawal of subsidies by national governments. This weighs on suppliers such as LG Energy Solution, which in 2016 began investment in a plant producing EV batteries in Wrocław, with an annual production capacity of 100,000 units. LG Energy Solution employs 6,600 people at this plant. In June, the company temporarily suspended construction production line of energy storage systems in Arizona.
Electric vehicle battery sales stalled as LG Energy Solution considers diversification into energy storage facilities / Bloomberg
Polish government focuses on energy storage
The possible shift of the company’s production from batteries to energy storage goes hand in hand with plans of the Polish government regarding subsidies such units for households. Rapid growth in the number photovoltaic generators in Polanddoes not go hand in hand with the possibilities of acceptance additional power by obsolete power grids. Their operators have had to stop accepting applications several times this year. solar energy.
Minister of Climate Paulina Hennig-Kloska announced a plan last week subsidies for energy storage in the amount of PLN 400 million, saying that this is just the beginning. For comparison, last year in Germany installation of over 500,000 energy storage units in households.
Export of car parts is slowing down
The sales problems of LG Energy Solution and its competitors are also starting to affect the economy of Poland. This month NBP blamed for the first monthly outage this year trade deficit country on the decline export of car partsheaded by batteries for electric vehicles.
