Our special Deep Dive editions offer a space to explore, alongside experts, key issues at the intersection of sustainability and business strategy. They respond to the growing need for deeper strategic knowledge in this area. Today, we focus on a fundamental element of the energy transition: storage.
Producing renewable energy is becoming easier, more efficient and competitive. The real challenge is storing it. What happens to solar energy when there’s no sun, or when the wind stops blowing? How can we ensure a continuous and flexible supply in a grid that is becoming more decentralized and digital?
At the heart of that answer are batteries. We analyse this highly relevant topic together with Ampace Technology Limited the leading global lithium battery manufacturer, in a conversation with its Chief Technology Officer, Dr. Yuan.
Before reading the interview, you might be wondering what batteries are and what role they play in the energy transition.
A battery is, essentially, a tool to manage the timing of energy: it stores the surplus when there is abundance and releases it when there is need. Batteries allow us to guarantee continuity of power supply, stabilize the grid, increase self-consumption and reduce emissions.
They are essential infrastructures to manage the timing of energy: store the surplus when there is abundance and release it when there is need. In a renewables-based system, this capability is critical. Without storage, a 100% solar or wind grid would be unreliable.
Batteries allow us to:
- Guarantee continuity of electricity supply.
- Stabilize the grid during demand peaks or interruptions.
- Increase self-consumption and energy independence.
- Reduce the use of fossil-fuel-based generators
More than 90% of energy storage in batteries is based on lithium-ion. Its high energy density, long lifespan and efficiency have made it the dominant technology. That’s why lithium matters so much: it is the chemical core of the energy transition. 70% of global lithium is extracted in Chile, Bolivia and Argentina, and around its extraction we face ethical challenges and relevant geopolitical questions.
The European Union is working to encourage recycling and circularity through Regulation (EU) 2023/1542, and has already set recycling targets of 50% by 2027 and 80% by 2031.
Europe has committed to deploying 200 GW of storage by 2030 (according to the RePowerEU plan). In countries such as Germany, France or the Netherlands, and in some U.S. states, storage is encouraged through capacity markets: mechanisms that remunerate not only the energy delivered, but also the capacity to be available to support the grid. In other countries where there is still no fully operational capacity market, this limits the economic incentive to invest in batteries. In territories with well-designed capacity markets, batteries become an attractive investment.
Thinking about storage is thinking about stability. That’s why today we want to understand some key aspects of the battery market through the lens of a global leader.
During my visit to Intersolar, I had the opportunity to speak with leaders from several companies, including Dr. Yuan from AMPACE. Dr. Yuan inspired me through his commitment to safety, making it compatible with excellent innovation, which allows the company to launch new products every year that facilitate the energy transition and the move of our economies toward more sustainable models.
Question (Mónica Chao): What is the latest innovation in the battery market?.
Answer (Dr. Yuan): Innovation requires time and investment. We set objectives, discuss them internally, and reach consensus. Thanks to this, our products have been well received in the market.
Last year, we launched systems without liquid cooling or air conditioning, and the JP series, with cylindrical cells more powerful than those currently on the market.
Today we are launching the PR-S4, a new residential storage system with up to 40 kWh capacity, modular design, 15,000 life cycles and a 15-year lifespan—all in a compact format that saves up to 35% space compared to the industry standard.
MCH: What level of investment is required for these technological advances?.
Dr. Yuan: We dedicate around 10% of our annual revenue to R&D, and 50% of our staff hold master's degrees or PhDs, which reflects our commitment to quality and innovation.
At Ampace, we’ve recently introduced the ONEN Strategy which reflects our commitment to providing a comprehensive, secure, and life-cycle-oriented energy storage ecosystem.
This strategy is anchored in four key pillars: high-efficiency products, highly compatible systems, top-tier safety, and high-value service. Our goal is to maximize return on investment for our customers by delivering differentiated solutions across diverse application scenarios.
‘ONE’ embodies our spirit of continuous leadership and innovation, while the ‘N’ symbolizes the infinite possibilities we see in the future of energy storage. With ONEN, we are reaffirming our mission to lead the global energy transition through solutions that combine real safety, long-term value, and a forward-looking vision.
MCH: In the last edition of Intersolar, the leading solar energy trade fair in Europe, you were selected for your project in Chile—an example of innovation and resilience. What can we learn from it in Europe?-
Dr. Yuan: Yes, the Chile project was designed for extreme conditions. We thoroughly researched the seismic activity and historical data of the region. Safety was our priority from the start.
We carried out multiple internal validations, even though the costs were high. We can’t skip those phases. Safety is one of our pillars, from top management to operational levels.
We have a dedicated group called RSD: R for Reliability, S for Safety, and D for Department. Its leader has the final say on safety matters, even above the CEO. This ensures that we never compromise system safety, especially with something as sensitive as energy.
MCH: I admire how you balance innovation with safety. What is your vision for Europe, especially after the recent blackouts in the south?-
Dr. Yuan: The energy transition requires storage systems to manage the variability of sources like solar and wind. Lithium batteries allow us to absorb these fluctuations flexibly.
However, before applying solutions, we must resolve safety through innovative methods. Once this is done, we can scale into different scenarios: residential, commercial, industrial, etc.
MCH: And what’s your view on the new regulations in Europe (Green Industrial Deal, circularity, battery recycling...) from a global perspective?.
Dr. Yuan: In China, there are already very advanced recycling technologies. For example:
- Lithium can be recycled at 94%.
- Nickel, manganese and cobalt reach 99.6% recovery.
- We are also seeing progress in sustainable design, green energy and eco-packaging.
- We already work to ensure that our products comply with European regulations before being exported.
The European regulatory process is still evolving, and we participate actively by providing evidence, adapting our supply chains and pushing our suppliers to comply as well.
MCH: What is your general view on the future of the energy transition?.
Dr. Yuan: I’m positive. Although it will take time and debate, the direction is clear. Companies respond quickly when there is clear direction. The key lies in collaboration between regulators, businesses and suppliers.
MCH: To close, is there an important message you want readers to take away from this article?.
Dr. Yuan: Yes. I would like to stress the importance of safety, not just as a marketing claim. It’s not enough to pass tests; we need to evaluate system performance over its entire lifecycle, even after 5 or 10 years.
We conduct accelerated tests under extreme conditions to anticipate potential risks, and we carry out constant risk assessments.It’s not only about economic loss if something fails, there’s also a social responsibility at stake.
We cannot compete only on price. A price war leads to sacrificing quality and safety, and that’s unacceptable. Safety is non-negotiable. We believe that if we maintain this long-term approach, the market and our customers will reward us. As we say internally: this is not a sprint, it’s a marathon.
MCH: Thank you for sharing your vision. It’s a powerful message of trust and commitment.
Dr. Yuan: Thank you, and thank you to everyone working to share the knowledge behind storage and technology in the energy transition.
Understanding the role of storage is vital for shaping corporate action on energy transition and sustainability.
