Another photovoltaic giant enters the energy storage market! Following Trina and Jinko, LONGi plans to take control of Jingkong Energy.

Against the backdrop of widespread adjustments in the photovoltaic industry, another industry giant is turning its attention to the high-growth energy storage sector. LONGi Green Energy Technology Co., Ltd., one of the world's largest solar manufacturers, plans to acquire Suzhou Precise Energy, an energy storage system integrator, aiming to build a new growth engine outside its core business.

According to a public document from the Shaanxi Provincial Administration for Market Regulation on November 13, LONGi Green Energy plans to obtain about 62% of the voting rights in Precise Energy through a series of arrangements including equity acquisition, capital increase, and voting rights delegation, thus achieving sole control over the latter. Precise Energy's main business is lithium-ion battery energy storage systems.

This move comes as global demand for energy storage continues to surge. With the increasing penetration rate of renewable energy power generation, the demand for energy storage from power systems is becoming more urgent, creating huge market opportunities for related companies. According to media reports, LONGi’s strategy is intended to follow in the footsteps of its major competitors, Trina Solar and JinkoSolar, both of whom have previously entered the energy storage field.

For LONGi itself, this strategic transformation comes at a time when its photovoltaic business is facing challenges. The company's recent performance has been under pressure. Although its latest quarterly net loss has narrowed due to various cost reduction measures, the urgency of developing new business remains.

Transaction Details: Aiming for about 62% voting rights in Precise Energy

According to the simplified case announcement of business concentration published by the Shaanxi Provincial Administration for Market Regulation, LONGi Green Energy has signed agreements with Precise Energy and other relevant parties. After the transaction is completed, LONGi Green Energy will hold 61.9998% of the voting rights in Precise Energy and will obtain sole control.

Prior to the transaction, Precise Energy was controlled by its founder and other individuals, who together held 44.79% of the shares and corresponding voting rights. The document does not disclose the specific financial size of the transaction.

Information shows that the target company, Precise Energy, was established in 2015 and is headquartered in Suzhou, Jiangsu, focusing on lithium-ion battery energy storage system business. As the acquirer, LONGi Green Energy was founded in 2000 and is listed on the Shanghai Stock Exchange. Its core business covers monocrystalline silicon wafers, battery modules, distributed and ground-mounted photovoltaic solutions, and it has already ventured into hydrogen equipment.

Strategic Consideration: Photovoltaics Under Pressure, Energy Storage Becomes New Growth Engine

LONGi Green Energy’s move into energy storage is driven by the tough realities faced by the photovoltaic industry and the huge potential of the energy storage market.

Analysts say that excess capacity and intense price competition have resulted in widespread losses for the solar industry. In this environment, seeking new growth points has become the common choice for leading companies. In sharp contrast to the struggles of the photovoltaic industry, the energy storage market is booming both in China and overseas. The grid’s increasing reliance on energy storage to meet the growing demand for renewable energy integration is creating vast opportunities for energy storage technology and system providers.

In fact, LONGi is not the first among photovoltaic giants to expand into energy storage. Its main competitors, Trina Solar and JinkoSolar, have already completed their layouts in the energy storage field, making it a key pillar of their future development.

From the perspective of the company’s own operations, LONGi is at a crucial adjustment period. In the last quarter, the company succeeded in narrowing its net loss through cost control measures. Chairman Zhong Baoshen stated in September that he is "confident" that the core business will achieve break-even in the fourth quarter. The acquisition of the energy storage company may provide new momentum for the company to return to a growth trajectory.

The original announcement is as follows:

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