Huawei bolts into Japan with renewable power storage, chasing Tesla

TOKYO -- Huawei Technologies will begin selling large-scale battery systems for renewable energy storage in Japan in March, we has learned, seeking to tap growing demand as the nation transitions away from fossil fuels.

Huawei will buy small battery packs from manufacturers including Contemporary Amperex Technology (CATL). These will be bundled into shipping-container-sized units that can each store 2,000 kilowatt-hours of energy -- roughly 200 times as much as a standard home battery. Capacity can be adjusted based on the buyer's needs.

China's largest telecommunications equipment maker will be entering a space also occupied by Tesla, which has been selling its own large battery projects here since last year. The entry by the Chinese and U.S. players with a significant cost advantage could pose a major threat to domestic rivals. Both companies already offer smaller household battery systems in Japan.

As demand for renewable energy grows, battery storage will be essential to ensure a stable power supply from these intermittent sources. Japan aims to have renewables account for 36% to 38% of energy generation by fiscal 2030, and the dearth of spare capacity in its power grid makes facilities for temporary storage that much more important.

Research firm Fuji Keizai expects the Japanese market for battery storage for solar and wind power to grow from an estimated 16.7 billion yen ($146 million) in 2020 to 45.8 billion yen in 2030.