After more than three years, the controlling shares of CATL KSTAR Technology
Co., Ltd., a joint venture between KSTAR and CATL, will be transferred to
KSTAR.
On the evening of September 7, KSTAR disclosed its plan to spend 67,784,300 yuan with its own funds to acquire 31% of CATL KSTAR. After the completion of the transaction, the company will hold 80% of the shares of CATL Costar, which will become the company’s holding subsidiary. The company plans to focus on the deployment of energy storage business with this subsidiary.
With the introduction of national energy storage industry guiding policies and the increasing value of storage in energy development and power system operation, the development of “storage + renewable energy” has entered a high-speed track.
KSTAR pointed out that the equity transfer is mainly due to the company’s confidence in the future development of the energy storage industry. The company plans to use CATL KSTAR as a platform develop energy storage business and include it in the company’s consolidated statement. Both KSTAR and CATL will leverage their accumulated advantages in technology, resources, market, capital, and management to produce energy storage-related products with premium quality and competitive price, to meet market demand and achieve long-term profitability.
It is noted that in April 2019, KSTAR and CATL established a joint venture company to develop energy storage, charging piles, and solar-storage-charging. KSTAR invested 98 million yuan, holding 49% of the shares, while CATL invested 102 million yuan, holding 51% of the shares. Calculated based on the latest purchase price, the value of the joint venture has increased by about 9%.
According to the plan, the joint venture will be responsible for the production of core energy storage equipment, including energy storage power conversion system and special energy storage PACK, charging piles and solar-storage-charging products. At present, the cost of energy storage is relatively high, with limited application scenarios. With the development of technology, the cost of energy storage will be gradually reduced.
In the future, energy storage will have extensive application scenarios in C&I, renewable energy power generation, power transmission and distribution, auto companies and residential users, etc.
