Energy Storage Cables: The Key Link in the New Energy Era

Against the backdrop of the global energy transition, energy storage wire and cable, serving as the key components connecting energy storage devices and loads, are increasingly becoming the focus of the new energy sector. They play a vital role not only in renewable energy, electric vehicles, smart grids, and other fields but also bear the responsibility of driving the energy revolution.

I. Industry Cyclicality of Energy Storage Wire and Cable

Wire and cable products are widely used in numerous industries such as power, construction, communications, and manufacturing, closely related to various sectors of the national economy. Therefore, their cyclicality is closely linked to the overall prosperity of the national economy. As an important branch of the wire and cable industry, energy storage wire and cable are similarly affected by the macroeconomic environment.

• Emergence of New Industries: With the construction of China's new power system and continuous investment in the grid, the development of emerging industries such as new energy has brought about new demand. China's power cable industry, including energy storage wire and cable, is expected to maintain high industry prosperity.
• Promotion of "Dual Carbon" Goals: Driven by the "dual carbon" goals, the new energy industry has experienced explosive growth, with a corresponding increase in demand for energy storage wire and cable.

Challenges Facing the Industry

Despite its broad prospects, the energy storage wire and cable industry also faces several challenges:

• Fluctuation in Raw Material Prices: The wire and cable industry is characterized by "heavy material and light labor," with major raw materials such as copper and aluminum accounting for over 80% of total costs. Fluctuations in prices have a significant impact on the industry.
• Low Industry Concentration: Market competition is intense, with some enterprises adopting low-price competition strategies to capture market share. This has led to uneven product quality, restricting the healthy development of the industry.
• Seasonal Characteristics: Infrastructure projects such as grid construction and rail transit are affected by winter weather or the Chinese New Year holiday. Construction progress slows down in the first quarter of each year, impacting the supply schedule of wire and cable products.

II. Development Prospects of Energy Storage Wire and Cable

Growth in Market Demand

With the transformation of the global energy structure and continuous technological advancements, the new energy industry is presenting unprecedented development opportunities, providing enormous growth space for the energy storage wire and cable market.

• Rapid Development of the Energy Storage Industry: The demand for high-voltage DC cables connecting energy storage stations' charging and discharging equipment and control equipment, as well as medium- and low-voltage AC cables for transformers, distribution cabinets, lighting, control, and other low-voltage equipment within energy storage stations, will increase significantly. Data shows that the scale of new energy projects commenced in 2024 reached a new high, with a total annual commencement volume of 28 million kilowatts, including 1.91 million kilowatts of energy storage projects.
• Trends in Technological Innovation: The research and production of eco-friendly, high-temperature-resistant, and specialty performance wire and cable have become important trends in the industry. Developing cable products suitable for high-temperature environments can ensure the stable operation of equipment such as wind power and solar power generation in extreme environments.

With strong technological research and development capabilities and strict quality control, Hichain Electric has introduced products that meet market demand, such as AGR silicone rubber wire and UL3641 energy storage wire.

• AGR Silicone Rubber Wire: Made of silicone material, it has an optimal temperature range of -60°C to 200°C and a voltage rating of 1500V. It features excellent high and low-temperature resistance, high voltage resistance, aging resistance, acid, and alkali resistance, and is widely used in electrical connections between high-temperature electrical equipment in power generation, metallurgy, and chemical industries.
• UL3641 Energy Storage Wire: With a rated temperature of 150-180°C and a rated voltage of 3300V AC, it excels in applications requiring high voltage and high-temperature resistance.

III. Current Situation of the New Energy Industry

Solar Power Generation

The photovoltaic industry is on the verge of explosive growth. In the next 5-8 years, photovoltaics will become one of the primary sources of global electricity. China, the United States, and Europe are the three regions with the largest installed capacity of new photovoltaic additions, accounting for 43%, 28%, and 18% of the global total, respectively. Photovoltaic cables, as a crucial part of the photovoltaic industry chain, have broad development prospects.

Wind Power Generation

With the continuous maturity of technology and decreasing costs, the installed capacity of wind power continues to grow. Tower cables and control cables in wind power generation systems must possess high reliability and weather resistance to cope with complex and changing natural environments.

New Energy Vehicles

The new energy vehicle sector is also experiencing rapid development, with higher quality and performance requirements for cables. High-voltage power cables connect battery packs, motors, and charging systems, using high-purity copper conductors paired with XLPE insulation materials to reduce energy loss. AC and DC charging cables support different charging needs and methods, emphasizing high current-carrying capacity and excellent insulation performance to ensure the safety and performance of new energy vehicles.

Energy Storage Systems

As an important part of the new energy industry, energy storage systems are crucial for improving energy utilization efficiency and ensuring the stability of energy supply. Energy storage wire and cable, as key components of energy storage systems, directly affect the safety, efficiency, and reliability of these systems. Hechang Electric's AGR and UL3641 energy storage wires, with their unique characteristics, contribute to the efficient operation of energy storage systems in different new energy application scenarios.

Energy storage wire and cable, serving as the crucial link in the new energy era, amidst the cyclical fluctuations of the industry, demonstrate broad development prospects driven by the thriving new energy industry. With continuous technological innovation and sustained growth in market demand, energy storage wire and cable will play an increasingly important role in the global energy revolution, contributing to the realization of "dual carbon" goals and sustainable development.