By Li Panpan

(JW Insights) Jun 29 -- The Chinese battery industry is extending its reach to the energy storage system (ESS) market in Europe. Chinese companies have been restrained from entering the U.S. market by the the Inflation Prevention Act (IRA) and their competition with South Korean counterparts over the European market is expected to intensify, reported Business Korea on June 28.

Chinese players are partnering with their country’s strong solar power value chain to challenge the European household solar power and ESS market.

The demand for household solar power in Europe has surged following the outbreak of the Russo-Ukrainian war. This is due to the increased burden of heating and electricity costs resulting from the rise in natural gas prices. Also, the demand for air conditioning has increased due to global warming, reported Business Korea.

Over 120 Chinese companies participated in the ESS specialized exhibition “EES Europe” and the solar exhibition “Intersolar.” Chinese battery companies, such as CATL and BYD, which have been making inroads into The Smarter E Europe in recent years, all made appearances. CATL even announced that it had signed contracts for more than 40 GWh during the exhibition, reported Business Korea.

Competing Korean companies include only LG Energy Solution and Samsung SDI. Hanwha Q CELLS, among solar companies, set up a large exhibition hall to make its presence known, but the number of participating companies was overwhelmingly in China’s favor. Korean companies are planning to compete in quality against China's price and volume offensive.

An industry insider predicted, “Various companies in appliances and communications will continue to participate in the household solar power and ESS market,” and added, “In response to China's domestic-focused alliance, Korean companies will seek cooperation with European companies and engage in a share competition,” said the Business Korea report.