Gao Xiubing, the Executive President of Nandu Power, recently discussed the company’s current business situation and future prospects, particularly in the data center and solid-state battery sectors. The energy storage industry has experienced significant fluctuations over the past four years, transitioning from profitable to facing losses. Nandu Power has been affected by the industry’s cyclical nature, with projected losses of 1.2 billion to 1.56 billion yuan for 2024. The industry is currently struggling with overcapacity and declining prices, leading to intense competition.
In response to these challenges, Nandu Power is focusing on solid-state batteries as a potential growth area while expanding its presence in the global data center energy storage market. Gao expressed optimism about the company’s ability to achieve high growth through solid-state batteries. He stated, “We expect that within the next two to three years, our solid-state batteries will be suitable for use in low-altitude aircraft. Although the overall cost of the solid-state battery supply chain remains high compared to current lithium batteries, we anticipate that mass production costs will fall below 1 yuan/Wh as application scale increases.”
Currently, Nandu Power is building a lithium battery production capacity of 6 GWh and a new energy storage capacity of 20 GWh. These investments aim to align with the growing demand for innovative energy storage solutions and the expansion of lithium battery applications. In terms of its recycling business, the company plans to reduce production capacity this year and enhance profitability by developing high-value-added products through technological upgrades and business model adjustments. Gao noted, “The unconfirmed revenues from shipments in 2024 will be reflected in 2025.”
As the industry moves into 2025, the competition among electric vehicles intensifies, with a surge in both price and technology battles. Solid-state battery technology has emerged as a critical focus for major automotive manufacturers, including Changan Automobile, Hyundai, BYD, and Mercedes-Benz, all of whom have announced plans to invest in this technology. Solid-state batteries are referred to as the “heart” of electric vehicles, offering significant advantages in energy density, safety, and cycle life compared to liquid lithium batteries. Although true commercialization of solid-state batteries may take time, industry expectations for their viability are becoming more aligned. According to GGII, the global solid-state battery market is projected to exceed 200 billion yuan by 2030.
Nandu Power has been researching solid-state batteries since 2017 and has completed pilot testing along with establishing a pilot production line. Gao mentioned that the company’s solid-state batteries use an oxide technology route. Currently, they are developing small-capacity solid-state lithium batteries with a pouch structure, achieving energy densities of 350 Wh/kg and a cycle life of 2000 times. The batteries have passed safety tests, including extrusion and short-circuit tests, meeting national standards. The main technical routes for solid-state batteries include oxides, sulfides, and polymers.
Gao also addressed the challenges related to the stability of solid electrolyte interfaces, stating, “We have currently solved the issue of tightly integrating the solid-solid interface, significantly improving the interface contact performance of the solid electrolyte and the electrodes, thereby effectively reducing interface resistance.” It is noteworthy that Nandu Power has indicated in investor interactions that its solid-state battery business will not significantly impact the company’s 2025 performance. Additionally, Shanghai Xiba has also mentioned in recent announcements that their investment in solid-state batteries is relatively small due to uncertainties in product iteration and market development.
In Gao’s view, the industry is progressing similarly in the development of solid-state battery products, and scaling the industry requires collaboration across the supply chain. Consequently, in February of this year, Nandu Power signed a strategic cooperation agreement with Yadi Group to promote the application of solid-state batteries in lightweight electric vehicles. The company is also collaborating with Tailan New Energy to advance the standardization and commercialization of solid-state battery technology.
Gao emphasized, “Solid-state batteries will only achieve large-scale application when they demonstrate commercial value from the investment side. As the application scale increases, we expect the mass production cost of solid-state batteries to drop below 1 yuan/Wh.”
Regarding the data center business, Nandu Power has been involved in industrial energy storage since its establishment in 1994, primarily serving global operators and data centers. The company began focusing on innovative energy storage in 2010. Currently, its operations revolve around three main sectors: innovative energy storage, data center business, and consumer lithium batteries. Gao elaborated, “After concentrating on the large-scale storage market, we are building a closed-loop industrial chain centered on ‘lithium batteries as the mainstay, with lead batteries as a supplement.’ In terms of storage applications, we focus on lithium iron phosphate technology, with an existing lithium battery chip capacity of approximately 11 GWh and an additional 6 GWh in construction. In the innovative energy storage sector, we currently have a capacity of 14 GWh and are building an additional 30 GWh.
Since March, Nandu Power has reported a high volume of orders in its data center business. Gao stated, “The growth of our data center business has been a new highlight this year. Domestic orders are robust, with a capacity utilization rate exceeding 90%, and orders are scheduled for production until July and August. Overseas orders have also significantly increased, particularly for high-voltage lithium battery products.” He further revealed that the company recently made strides in cooperation with a major global software company, successfully winning a 120 million yuan contract for lithium battery equipment for its U.S. data center, followed by an additional order worth 240 million yuan. The core product remains the company’s self-developed high-voltage, high-power lithium battery backup power systems. “These two orders are expected to be delivered within four to five months,” he added.
In terms of capacity, Nandu Power currently has a lead battery capacity of 4 GWh and a high-voltage lithium battery capacity of 1 GWh, with additional capacity reserves. The company’s data center products are primarily focused on backup power systems, utilizing lithium iron phosphate technology, which offers a lifespan of over 10 years and discharge rates ranging from 1C to 6C, meeting various data center demands from 10 minutes to 2 hours.
Gao described the company’s products as high-end battery solutions for data centers. Since the second half of last year, prices for data center batteries have gradually increased. Based on market supply and demand, he anticipates further price rises for these products this year. “The construction of computing power centers has accelerated, leading to explosive growth in data center battery products both domestically and internationally. However, the application of lithium batteries in domestic data centers is still relatively low. In the next two years, we expect significant order growth for domestic lead battery products. In North America and Southeast Asia, the penetration of lithium batteries is expected to increase due to environmental regulations and space requirements,” Gao predicted. He concluded that as technology matures, safety performance improves, and costs decrease, the application of lithium batteries in data centers will become more widespread.
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