The overseas energy storage market continues to thrive, prompting Deye Co., Ltd. (605117.SH), a leading manufacturer of photovoltaic inverters, to strategically expand its production capacity. In an announcement made on the evening of April 1, 2025, the company revealed that its wholly-owned subsidiary, Ningbo Deye Energy Technology Co., Ltd. (referred to as “Deeye Energy”), has signed an Investment Agreement with the Cixi Binhai Economic Development Zone Management Committee. This agreement outlines plans to invest in a project that aims to establish a production line with an annual capacity of 16GWh for industrial and commercial energy storage in the Cixi Binhai Economic Development Zone.
The project will be executed in two phases. The first phase is expected to have an annual capacity of 7GWh with a fixed asset investment of no less than 8.95 billion yuan. The second phase is planned for an annual capacity of 9GWh with a fixed asset investment expected to be at least 12.32 billion yuan. Consequently, the total investment for the project is projected to be no less than 21.27 billion yuan.
According to the announcement, funding for this project will be sourced from Deeye Energy’s own funds or raised funds. The company aims to commence construction promptly after signing the State-owned Land Use Rights Transfer Contract and plans to complete the project within 36 months after acquiring the land, with production expected to be fully operational within 60 months.
Deeye Co., Ltd. has indicated that various factors, including geopolitical tensions, high electricity prices, and supportive policies, are further driving demand in the overseas industrial and commercial energy storage market. The investment project aligns with the company’s strategic development needs and its assessment of the market potential for commercial energy storage systems, anticipating growth in sales in this sector.
A research report released by Huaxi Securities on March 30 noted that the overseas photovoltaic storage market is currently experiencing a high level of activity. The report highlighted that the end of inventory depletion in the European household storage market, combined with the upcoming demand peak in the second quarter, is likely to lead to a continued recovery in traditional markets like Europe. Furthermore, high electricity prices and the need for stable power supply in emerging markets are expected to enhance demand for household and commercial storage solutions.
Deeye Co., Ltd. boasts a comprehensive product lineup, including photovoltaic inverters, energy storage battery packs, and environmental appliances such as dehumidifiers and HVAC products. According to its performance forecast, the company expects to achieve a net profit attributable to shareholders of 2.9 billion to 3.1 billion yuan in 2024, representing a year-on-year increase of 61.92% to 73.09%. In a generally sluggish photovoltaic industry, Deeye Co., Ltd. stands out as a significant contender.
One key reason for Deeye Co., Ltd.’s strong performance is its focused strategy in overseas markets. The company has indicated that the demand growth in the overseas photovoltaic storage market is manifesting distinct regional characteristics. In regions like Africa and Asia, aging power grid infrastructure is driving high demand for household energy storage products capable of switching between grid-connected and off-grid modes. In contrast, the European market, particularly Germany, is prioritizing the economic viability of storage products due to high electricity prices, while the Ukrainian market is focusing more on rigid electricity needs due to geopolitical factors.
Notably, Deeye Co., Ltd. is accelerating its international expansion. After announcing an investment of up to $150 million to establish a production base in Malaysia last December, the company reported on March 4 that it has completed the registration of its subsidiary in Malaysia and plans to purchase approximately 133,200 square meters of land for nearly 200 million yuan.
