01 Hainan’s “Counterattack”
On the evening of August 8th, Hainan Storage issued the “Statement on Responding to Recent Online Rumors and Untrue Information,” which clarified five aspects of rumors.
A few days earlier, with rumors swirling, Hainan Storage stated that Gao Feng was penalized by the public security bureau for violating commercial secrets, and the suspect was none other than the “giant”宁德时代 (CATL, hereafter uses the original Chinese name as it’s a proper noun in this context).
In the statement, Hainan Storage claimed it adopted a “complex fluid technology,” a well-established third-party technology known to the public, not a trade secret, thus not constituting commercial bribery.
Moreover, the statement clarified that Hainan Storage and Powin had normal business dealings. As Powin’s largest customer, Powin’s bankruptcy had no impact on Hainan Storage.
Hainan Storage also emphasized that its cooperation with Powin was in the normal delivery stage, with no unresolved debt issues. Powin’s bankruptcy filing didn’t list Hainan Storage as a creditor.
“Powin’s bankruptcy filing won’t affect our production and operation,” Hainan Storage stated. Another point was about the 5MWh battery technology. Hainan Storage claimed its 5MWh battery had higher energy density and better performance than CATL’s.
Hainan Storage pointed out that its 5MWh battery, released in early 2023, was developed over two years and was a fully independent product.
Beyond refuting rumors, Hainan Storage also showed its determination. It stated it would report illegal activities to the police and safeguard its rights through legal means.
It also called on the industry to abandon “industrial bullying and internal friction.”
02 “Victim” CATL
Compared to Hainan Storage, CATL might be the bigger “victim.” Data shows numerous legal cases between CATL and other companies.
Recently, CATL filed a lawsuit against Hainan Storage. The case was accepted on April 21, 2024.
The reason was that Hainan Storage violated CATL’s “protective circuit” patent. CATL claimed Hainan Storage used its patented technology without permission, infringing on its rights.
The “protective circuit” patent is crucial for battery safety. CATL accused Hainan Storage of infringing on its intellectual property.
Court documents show that CATL sued Hainan Storage for 22 million yuan. The Changsha Intermediate People’s Court accepted the case on June 5, 2024.
On August 16, 2024, the court ruled that Hainan Storage and others infringed on CATL’s patents and should stop infringement and pay damages.
After the judgment, Hainan Storage appealed. But the court dismissed the appeal and upheld the original judgment.
Before this, in August 2024, CATL sued another company for patent infringement. The court ruled that the company infringed on CATL’s five patents and should pay 5.05 million yuan.
Data shows that in 2021, CATL initiated 15 lawsuits against companies like 蜂巢能源 (Honeycomb Energy), mostly for patent infringement.
In fact, not only Honeycomb Energy but also other companies have faced CATL’s lawsuits.
Data indicates that as of August 5, 2024, CATL had initiated 156 lawsuits. 35.08% were for patent infringement, 49.36% for unfair competition, 9.51% for civil cases, 17.09% for labor disputes, and 70.25% were in Fujian.
03 “Fierce Competition”
As a leader in the power battery and energy storage industries, CATL faces intense competition.
According to China Automotive Battery Innovation Alliance data, in April 2024, domestic power battery installations reached 54.1GWh, a significant increase.
Among them, CATL’s market share was 29.44%, down 4.48% from March, and the lowest since November 2023.
In this context, second-tier battery companies are accelerating their catch-up in the energy storage market.
Many companies, including Hainan Storage, CATL, Honeycomb Energy, etc., are focusing on energy storage.
CATL was established in 2011. It was a subsidiary of 宁德时代新能源科技有限公司 (CATL New Energy Technology Co., Ltd.). After restructuring, it became a joint-stock company.
After completing share reform, CATL went public. This period saw many lawsuits from CATL against competitors.
But CATL’s pressure couldn’t stop competitors’ growth.
In 2024, Honeycomb Energy achieved revenue of 37.52 billion yuan, a 2.85% increase, and net profit of 5.91 billion yuan, a 100.88% increase.
Its energy storage system revenue was 72.48% of total revenue, a 29.6% increase.
In the first quarter, Honeycomb Energy’s revenue was 6.966 billion yuan, net profit 232 million yuan, and power battery shipments over 1GWh.
According to data, in 2024, Honeycomb Energy’s power battery loading volume ranked fifth domestically.
Honeycomb Energy was listed on the main board in November 2022. Due to market factors, it suspended listing on December 22, 2022.
As a rising star, Honeycomb Energy became a target for CATL. Founded in 2018, it grew rapidly.
In 2024, Honeycomb Energy’s energy storage battery shipments ranked third globally. It has a strong presence in the energy storage battery market.
More importantly, Honeycomb Energy’s technology is advanced. Founded for six years, it has achieved remarkable results in 280Ah energy storage batteries, 314Ah batteries, etc.
In April 2024, Hainan Storage announced the mass production of 5MWh energy storage batteries and 314Ah batteries.
As of now, Hainan Storage’s shipments of 280Ah and 314Ah batteries are increasing. It also plans to produce 587Ah batteries.
Facing competition, companies need to continuously innovate to maintain their edge.
