Samsung SDI says it has signed a MOU on the establishment of a ESS (energy storage system) joint venture with Sungrow of China.

The joint venture will develop, produce and sell ESS applications in China, with construction of a production plant to start in the first half of next year.

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The plant aims to capitalise on the Chinese ESS market with local production and to increase the business synergy with Xian automotive battery plant.

“This will become the cornerstone of pioneering and dominating the Chinese ESS market expected to grow greatly in the future,” said Samsung SDI CEO, Sangjin Park.

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