Taiwan Cement Expects Battery Business to Contribute NT$30 Billion in Revenue by 2024

Taiwan Cement Corp. (1101-TW) is aiming for the battery business with an annual production capacity of 216 million units by 2024, according to a company executive.

With solid demand in the global market, the price is expected to rise year by year to US$5 per unit, contributing to up to NT$30 billion in Taiwan Cement’s revenue by 2024, he added.

Taiwan Cement Chairman Nelson Chang expects batteries, energy storage, green energy and other new energy businesses to become one of the group’s main business drivers by 2025, with the cement business occupying a slightly smaller share.

Taiwan Cement’s battery business has turned a loss into a profit in the first quarter. It is expected to drive gross profit up and contribute to profitability in the future under the expansion of battery scale and the completion of new construction sites.

Taiwan Cement Molie Quantum Energy’s super battery plant in Siaogang broke ground in the fourth quarter of last year. It is expected to commence production in the first quarter of next year with an annual capacity of 1.8 GWh.

The plant will produce about 24,000 units of long-range batteries for electric vehicles. Together with Taiwan Cement’s E-One Moli Energy Corp. the total battery capacity will reach 3.3 GWh.

Chang said that the future battery business does not rule out the continued expansion of production capacity. The main problem is the talent and supply chain, especially in raw materials. There is also a shortage of electricity in Taiwan.

But it can be developed; it just needs time, according to Chang, who stressed that Taiwan Cement is actively cultivating a localized supply chain in addition to its research and development.

In terms of energy storage, Taiwan Cement’s global capacity is expected to exceed 400MWh by the end of this year, and by 2024, the global storage capacity is expected to exceed 2900MWh.

In addition to Heping Power, Taiwan’s total renewable energy generation capacity is expected to reach the RE100 initiative standard by 2025. However, Taiwan Cement is mainly supplying green power demand to Taiwan exporters.

The European market is dominated by NHOA, acquired last year, with completed and planned sites in 26 countries, including Italy, Spain, Greece, Australia, Singapore, Chile and the United States.

Chang revealed that the company is now actively developing charging station applications for energy storage electric vehicles with DC fast charging, which will become a future trend because it can charge and discharge directly through the batteries rather than through the grid.

In terms of green power investment, Taiwan Cement’s various green energy projects include wind power, photovoltaic, geothermal and ocean thermal, and more. It is expected that by 2025, a total of over 500MW will be built.

Chang pointed out that for green power to be fully and effectively utilized, the corresponding proportion of energy storage demand must reach 20% of green power. At least 5GW of energy storage will be needed in Taiwan by 2025, and the global RE100 climate initiative will drive the huge demand for industrial green power and energy storage in Taiwan.