SF Suntech, a US subsidiary of China-based solar cell and module maker Shunfeng Photovoltaic International, agreed on Friday to invest $25m in US-based energy storage company Powin Energy Corporation.
Powin Energy, a subsidiary of outdoor equipment and housewares manufacturer Powin Corporation, produces lithium-ion energy storage systems with a capacity of 250kWh to 500kWh. They are generally used in conjunction with renewable energy systems and can be scaled to provide up to 10 MW of energy over a one-to-eight hour period.
SF Suntech obtained the stake through a share subscription agreement that will enable it to acquire another 30% of Powin Energy over the next two years in return for a further $37.5m.
Attributing that share price to the initial investment would suggest the Chinese company has taken a 20% stake in the energy storage provider. Powin Energy has earmarked $5.2m of the funding to repaying a loan from its parent company.
Zhang Yi, Shunfeng Photovoltaic’s chairman, said: “We view the technology of Powin Energy Corporation as of strategic significance to our strategy of developing and deploying large-scale energy storage devices throughout China and elsewhere in the world.
“We are very pleased to join forces with Powin Energy Corporation and its scientific and technical team in the rollout of energy storage systems.”
– Photo courtesy of Powin Energy Corporation