Shanghai Electric Energy Storage Technology, the energy storage subsidiary of Shanghai Electric, has raised RMB400 million ($54 million) in series A financing with a view to developing its energy storage business.
Investors in the funding round included Huajiang Capital, Guojun Venture Capital, and Cornerstone Capital.
Shanghai Electric said the proceeds will be used to promote the research and development of new systems, boost its industrial supply chain structure, construct 100Mbps stacks that can be used in megawatt container-type vanadium redox flow battery (VRFB) energy storage systems, deepen industrial cooperation, accelerate industrial upgrades, and stabilise its access to capital.
Once the financing has been completed, the post-investment valuation of Shanghai Electric Energy Storage will exceed 2.2 billion yuan ($300 million).
The company already has plans to launch a Series B financing campaign in 2024.
“Moving forward, Shanghai Electric Energy Storage Technology will continue to solidify its development positioning and step up as a global leader in long-term electrochemical energy storage,” said Jin Xiaolong, vice president of Shanghai Electric Group. “Specifically, we must strengthen technological innovation and realise the transformation of our technological achievements, deploy 100-megawatt projects, and strengthen leadership of demonstration projects, as well as collaboration in the energy storage industry.”
Shanghai Electric Energy Storage has recently formed strategic partnerships with several local governments and companies across China as part of its effort to â€œsolidify industry synergy across the value chain to catalyse innovation and drive forward the energy storage industryâ€. Specifically, the company has formed partnerships with Liangshan Yi Autonomous Prefecture, the government of Chaohu Economic Development Zone in Anhui Province, Jiangsu Huadian Energy Company Limited, China General Nuclear Power Corporation (Sichuan), and Kaifeng Shidai New Energy Technology.
In May 2023, the company signed a framework cooperation agreement with the Baicheng Municipal Government in Jilin to develop a 100MW vanadium redox flow battery energy storage project, which is currently in the planning phase and expected to connect to the grid by 2024.