CATL Is Interested in the Photovoltaic Business and Is In Talks to Acquire DAS Solar

Latepost has exclusively learned that CATL is seeking to acquire companies involved in photovoltaic (PV) modules and PV cells, and is currently in talks to acquire a PV module manufacturer, DAS Solar. DAS Solar was established in 2018 and ranked 8th globally in PV module shipments in the first half of this year.

Multiple informed sources have revealed that before reaching out to DAS Solar, CATL had attempted to acquire a 51% stake in another PV module manufacturer, Runergy Co., for 4 billion RMB. Runergy is the fifth-largest PV cell manufacturer in the world.

Ultimately, leading player in the PV industry Tongwei Co. outbid CATL with an offer of 5 billion RMB to acquire a 51% stake in Runergy, setting a record for the largest merger and acquisition amount in China’s PV history. Tongwei announced this transaction in mid-August.

In 2022, Robin Zeng, the chairman of CATL, revealed that the company was developing perovskite (a new type of photovoltaic battery material that can enhance the efficiency of solar power generation) and other next-generation photovoltaic technologies. In May of last year, CATL launched the “Zero Auxiliary Source Energy Storage Integration” system: this system first converts solar energy into electrical energy using photovoltaic power stations, stores it in lithium batteries, and then flexibly allocates the output power to supply the grid or other large industrial and commercial facilities, such as factories and commercial districts, all without the need for an external power source.

In June of this year, CATL’s subsidiary, Contemporary Green Energy Co.ltd., successively acquired Liyang Leyue, which primarily builds small photovoltaic power stations, and Xijia Energy, a manufacturer of photovoltaic production equipment, gaining 100% control of both companies. Liyang Leyue was originally a subsidiary of the photovoltaic giant Longi.

Now, CATL’s attempt to acquire photovoltaic module companies is a move to enter the core area of the photovoltaic industry chain.

The entire photovoltaic (PV) chain includes several links such as silicon materials, modules, solar cells, and photovoltaic glass. Among these, modules account for the highest cost share in the entire PV system, approximately 50%.

Manufacturing photovoltaic modules in-house will enhance CATL’s degree of vertical integration in the new energy sector. It will transform into a company capable of simultaneously producing electricity (photovoltaic power generation modules), storing electricity (energy storage batteries), and utilizing electricity (charging and battery swapping stations).

Currently, it is also a window period for acquiring photovoltaic assets. In early 2023, the photovoltaic industry experienced a significant decline in valuation due to overcapacity, with Tongwei Co., the world’s second-largest supplier of photovoltaic cells, seeing its market value drop by over 70% from its peak in 2022, currently slightly above 100 billion RMB; the world’s second-largest photovoltaic module manufacturer, JA Solar, currently has a market value of 33.5 billion RMB, which is only equivalent to CATL’s net profit for three quarters.

The photovoltaic industry is entering a new merger and acquisition clearing cycle in 2024. Companies like CATL, from another sub-sector of the new energy field, are beginning to seek integration within the photovoltaic sector, attempting to become a more comprehensive energy giant.

SEE ALSO: CATL Plans to Establish 10,000 Battery Swapping Stations Across China

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