Total S. A. signed an agreement with the world-leading manufacturer to expand lithium-ion battery production. Fossil-fuel companies are taking advanced positions on the field of global energy transition, whereas China is hungry for more natural gas.
The French Total joined the club of fossil-fuel companies that are seeking ways to diversify their product/services list and to expand their means of income.
Saft is a subsidiary of Tianneng Energy Technology, the leading private battery manufacturer of the world. The Chinese investment-holding company offers lead-acid and lithium-ion batteries for various vehicles – including electric – and for wind and solar energy storage.
The production would take place in an enlarged Saft gigafactory, Changxing province. This joint venture is said not just to target the Chinese inland. The goal is to develop and sell advanced lithium-ion batteries for the e-mobility and e-storage market worldwide.
Insiders of the fossil-fuel industry expect the demand for oil will start to decline in two decades. If the largest winners of the current landscape of energy consumption don’t want to lose profit and relevance, they have to take positions on the field of renewables and in the energy-providing networks.
One way to achieve this is buying into the infrastructure and offering ’clean’ energy and all kinds of related services. Shell has just started to offer clean energy on the UK market. Total last purchase along this line was Direct Energie and their renewable and natural gas power plants.
Meanwhile, the market for the ’transition fuel to renewables’, natural gas is still expanding. Total’s another recent deal with China is a 10-years agreement to produce liquefied natural gas.
Home of the world’s largest gas-burning cities, China’s demand for LNG is expected to grow by 14% compared to the consumption last year in 2019. The official policy of the Asian giant is to move industries and households from coal to natural gas. But the industry and the grid are struggling to keep up with the increasing energy demand.