Webinar: Grid-Connected Energy Storage Supply Chains in the Coronavirus Era
The onset of COVID-19 (coronavirus) began in China, and quickly spread to South Korea. Together they comprise much of the world’s Lithium-ion (Li-ion) battery manufacturing. It then expanded to Europe and North America, which together comprise the bulk of non-Chinese demand for those batteries. This progression created a series of disruptions in the supply chain for Li-ion batteries, which also affects the U.S. market for grid-connected energy storage.
While a majority of market participants responding to an ESA survey in March reported some delays, the full extent of the disruption may not be fully revealed for several months. An understanding of the supply chains involved, related supply markets (e.g., Li-ion electric vehicle batteries) and how these markets interact with the broader economy will be critical to an analysis of impact, as well as suggest strategies that market participants and policymakers can employ to mitigate some of the adverse effects. For instance, as the coronavirus spread, focus shifted somewhat from Chinese manufacturing capability to the impacts on U.S. energy storage system developers, who rely on the mobilization of labor and material to deliver and assemble components, then test and commission systems. Social distancing policies such as travel and work restrictions affect these activities in different ways, and changes in these policies will determine impacts on the grid-scale energy storage industry.
- Yayoi Sekine, Head of Decentralized Energy, BloombergNEF
- Daniel Finn-Foley, Head of Energy Storage, Wood Mackenzie
- Lindsay Gorrill, CEO, KORE Power