Penghui Energy Achieves Full Production of Main Energy Storage Products and Plans to Launch 587Ah High-Capacity Battery Cells by 2026

Penghui Energy is experiencing full production of its main energy storage products and plans to launch a new 587Ah high-capacity battery cell by 2026.

The energy storage industry continues to thrive, and Penghui Energy (300438) has reported strong production and sales, forecasting a profit of ¥170 million to ¥230 million in 2025, marking a significant turnaround from previous losses. Following the announcement of its performance forecast on January 22, Penghui Energy hosted an institutional research meeting to address market demand, order status, and production capacity.

The company stated that its key energy storage products, such as the 314Ah large battery cell and the 100Ah and 50Ah small battery cells, are currently operating at full capacity. There is a growing demand for cost-effective energy storage solutions, driving a clear trend towards larger capacity cells. In 2025, Penghui Energy will introduce a 590Ah/600+Ah high-capacity energy storage cell that utilizes a three-tier protection system featuring nano-shield technology, gel flame-retardant electrolyte technology, and honeycomb carbon cooling technology. This innovation ensures safety while achieving an efficiency greater than 96% and a cycle life exceeding 10,000 cycles.

During the recent research session, the company revealed plans to introduce the new 587Ah high-capacity cell in 2026. The second phase of the Quzhou facility has already been completed, with production expected within the year. Regarding technical strategies, Penghui Energy has opted for a more established winding process based on factors such as yield rates, cost control, and production speed.

According to Penghui Energy, domestic demand for the 587Ah product is anticipated in 2026, while overseas demand may take a bit longer, likely not ramping up until 2027. The company noted a favorable supply-demand balance in the small battery segment. It emphasized that small batteries are experiencing growth in multiple regions under similar conditions, while leading manufacturers are cautiously expanding capacity. Additionally, subsidies in Australia and Europe are driving increased demand, resulting in a tight supply of small battery cells.

In the large battery sector, Penghui Energy remains confident. According to the New Energy Storage Scale Construction Special Action Plan (2025-2027), the new energy storage installation capacity in China is expected to exceed 180 million kW by 2027, leading to direct project investments of approximately ¥250 billion. The company noted that lithium-ion battery storage will continue to dominate the new energy storage technology landscape, with clear growth prospects in large-scale storage applications across various sectors, including power-side storage, grid-side storage, industrial parks, computing facilities, commercial complexes, integrated solar-charging stations, distributed photovoltaics, and communication bases.

Internationally, factors such as the construction of computing centers in the United States, the absorption of new energy in developed countries, and energy transitions in countries along the Belt and Road Initiative are expected to drive demand for large-scale storage solutions. Penghui Energy has already fulfilled a substantial number of overseas large storage orders in 2025, receiving high customer satisfaction, and anticipates significant growth in 2026.

On the cost side, there has been a notable increase in lithium carbonate prices recently. In response, Penghui Energy plans to adopt varying raw material procurement strategies based on market conditions and has initiated commodity hedging to mitigate risks associated with raw material price fluctuations. The company has begun signing linked price contracts with customers.

With the rising prices of lithium carbonate, there are questions about whether sodium batteries will find new growth opportunities. Currently, Penghui Energy believes that sodium batteries do not yet offer a significant cost-performance advantage compared to lithium batteries.

On a global scale, at the beginning of 2026, Penghui Energy’s board approved the issuance of H-shares for listing on the main board of the Hong Kong Stock Exchange. This process is progressing steadily, although specific details have yet to be finalized.