China announces procurement of sodium-ion batteries with price ceiling at $150/kWh

An energy storage project integrating five different technologies is taking shape in a suburban district in the south of Shanghai, China. Once delivered, the Fengxian Xinghuo Comprehensive Multiple New Energy Storage Technology Route Comparison Test Demonstration Base (Phase I) will feature 40 MW/160 MWh of storage and spread across around two hectares.

The project will feature 10 MW/40 MWh of lithium-ion batteries, 10 MW/40 MWh zinc-iron redox flow batteries, 10 MW/40 MWh all-vanadium redox flow batteries, 5 MW/20 MWh of sodium-ion batteries , and 5 MW/20 MWh semi-solid state batteries.

Shanghai Shenneng New Energy Storage Research and Development Co., Ltd., a subsidiary of Shenneng Group, which is in charge of the project development, has announced the first technology procurements.

On March 17, it issued a tender notice for the procurement of 5 MW/20 MWh of sodium-ion batteries, setting the price limit at CNY 1.1/Wh ($150/kWh).

The technology will be delivered in two phases. The first phase is for the minimum expandable unit capacity of not more than 2.5 MWh. The second phase will be delivered only if the first batch completes the performance acceptance of the project developer and obtains the China National Accreditation Service for Conformity Assessment (CNAS), China Metrology Accreditation (CMA), and TÜV certifications for the battery equipment. The warranty period of the storage system is two years.

On the same day, Shanghai Shenneng New Energy Storage Research and Development has also launched a procurement for the semi-solid state components of the project of 5 MW/20 MWh. In this tender, the price ceiling was set at CNY 16 million, equivalent to a unit price of CNY 0.8/Wh ($110/kWh).

Similar to the sodium-ion procurement, the semi-solid state technology will be supplied in two phases. The first phase is for the minimum expandable unit capacity of not more than 5 MWh. The second phase will be delivered only if the first batch completes the performance acceptance of the project developer and obtains the CNAS, CMA, and TÜV certifications. The warranty period of the storage system is two years.

Finally, the project proponents have also initiated the procurement of 10 MW/40 MWh of lithium iron batteries. This tender is seeking eight 5 MWh energy storage battery containers.

Bidders are required to have at least one single operational project with a capacity of 10 MWh or more as of the bid deadline, specifically string-type lithium iron phosphate energy storage facilities. Their cumulative electrochemical energy storage project contract performance should be at least 1 GWh of projects.

There was no price ceiling set in the lithium ion procurement; however, recent large tenders in China have been delivering very low prices for this established technology at around $65/kWh.