CATL is reportedly exploring the acquisition of Chinese solar cell and module producer DAS Solar
This move is likely aimed at vertical integration with the addition of PV manufacturing
Its previous bid of RMB 4 billion to acquire Runergy apparently failed with Tongwei swooping in with a RMB 5 billion offer
Contemporary Amperex Technology Co., Limited (CATL), the China-headquartered leading battery manufacturer and technology company, is reportedly in talks to acquire Chinese solar cell and module maker DAS Solar, which will mark its entry into mainstream PV manufacturing business.
DAS Solar has been in the PV manufacturing business since August 2018 and claims it has more than 150 patents in various areas. It focuses on n-type TOPCon, PERC and XBC technology.
The company’s current solar cell and module production capacity stands at 30 GW each. In H1 2024, DAS Solar was 8th among the top 10 solar module suppliers globally, according to InfoLink Consulting (see Solar Module Shipments Of Top 10 Companies Grew To 226 GW In H1 2024).
According to a LatePost news report, this is CATL’s 2nd attempt to acquire a solar PV manufacturer. Its original choice was Runergy, for which it bid RMB 4 billion. However, Tongwei beat CATL to it with a higher bid of RMB 5 billion to acquire a 51% stake in Runergy (see Tongwei Makes Offer To Acquire Majority Stake In Fellow Chinese Company).
An oversupply of solar products in the Chinese market has led to a sharp drop in prices, which in turn has been impacting PV businesses in the world’s largest solar market. It has led to some companies cutting down their workforce and stopping production while reporting losses. Things do not seem to be improving anytime soon, according to the Bloomberg New Energy Finance which claims some companies may not survive this cycle (see BNEF Pegs 2024 Global Solar PV Installations At 592 GW).
This situation leaves the door open for consolidation. A battery maker, CATL’s interest in solar PV manufacturing is likely based on its estimation of the growth of this technology that coincides with the growth in demand for battery solutions, which will work well for its vertical integration. Energy generated by solar systems can be stored in battery energy storage systems and used to power EVs, and other equipment and facilities. There have been news reports of CATL developing perovskite solar cells.
In June 2024, its subsidiary Times Green Energy acquired a LONGi Green Energy Technology subsidiary, Liyang Solar, which builds small-scale PV power stations, and PV production equipment manufacturer La Liga Energy, according to the news report.
.png?w=50&fm=png){kind=logo}