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European Energy Storage Demand Soared Lithium Battery Imports Amidst Looming Energy Crisis

European Energy Storage Demand Soared Lithium Battery Imports Amidst Looming Energy Crisis

European Energy Storage Demand Soared Lithium Battery Imports Amidst Looming Energy Crisis

  • 31-Oct-2022 6:06 PM
  • Journalist: Patricia Jose Perez

Frankfurt: According to the latest stats and after interacting with prominent market experts from China and Belgium, it has been concluded that “Household energy storage demand for the imported Lithium batteries exponentially soared.” Overseas energy demand is ushering in an explosion, and the need for energy storage equipment for households in the European region has experienced a steep growth. The European and Chinese Lithium-based energy storage equipment imports/exports enterprises are exponentially expanding their production capabilities to cope with the demand as the energy crisis looms over the major western markets.

According to the customs data and the insights from the person in charge of an energy storage organization in the Suzhou Industrial park, Jiangsu reported that the demand for energy storage in the European market in 2022 will be much higher than in the same period in the previous few years. Manufacturing enterprises are currently witnessing a 120% increase in average shipments compared to the first half of 2022. In the first nine months of 2022, China’s total exports of Lithium-ion batteries reached approx. USD 35 Billion, an increment of 83.5% on a Year-on-Year, in which the majority share of supplies concentrates over the European market.

The European markets are currently experiencing the below average performance of Economic activities with a looming energy crisis, gas shortage, and higher inflation in the domestic markets. Traditionally, during the third and fourth quarters, major European economies will restock their natural gas inventories, but amidst the sanction of the Nord-Stream II gas pipeline and disruption of Natural gas supply in the Nord Stream-I pipeline. The imports of Russian Natural Gas were net zero, prompting a gas rationing scenario in the European markets during the upcoming peak heating season.

As a ripple effect, European households keep lithium battery energy storage as a prominent alternative if the scenario worsens. The heating requirements will also soar as the peak winter approaches in the upcoming months. At the same time, gas prices are hovering at historic highs, with supply constraints worsening the overall outlook. Furthermore, if the condition persists, it will instigate unprecedented uncertainties. Although securing the Lithium battery energy storage supplies came out as a viable and feasible option for European households. In response, it has been anticipated that the diversion of Lithium batteries to fulfill energy needs will further constrain supply capabilities supporting the prices for Lithium Carbonate, Lithium Hydroxide, and Lithium Hexafluorophosphate to inflate further.

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