1. Supply Chain Expansion and Risk Assessment

Over the past decade, the battery storage industry has seen steady growth, partly due to the U.S. Inflation Reduction Act. While there is significant growth potential, the associated supply chain expansion brings risks. Developers and integrators need to thoroughly assess the complexities of battery procurement and integration to ensure the project's economic viability.

2. Monitor Market Fluctuations and Policy Impact

Battery procurement is influenced not only by project scale and efficiency but also by significant impacts from commodity market fluctuations and government policies. Developers should closely monitor price changes in raw materials like lithium carbonate and adjust procurement strategies accordingly to mitigate potential price volatility.

3. Challenges from New Entrants

As more new entrants enter the market, developers need to be cautious when selecting products and making supply chain decisions. Conducting risk assessments on products and ensuring the reliability and stability of chosen suppliers is crucial to alleviate potential procurement risks.

4. Identify and Evaluate Procurement Risks

Before implementing battery procurement contracts, energy storage system developers should identify and evaluate potential procurement risks, including supply chain disruptions, cost overruns, and compliance issues.