3

Gigawatt-Hours

of annual production supplied to CBAK’s customers

10

Years or More

the product life of CBAK’s energy storage systems

69.4%

Increase

in net revenue, 2019-2020

View Our Analysis

The Path to Drawdown: Energy Storage

On the path to electrify everything, the world needs more renewable sources of energy. But also needed are energy storage systems and batteries. Because the two dominant sources of renewable energy - solar and wind - are intermittent (they only generate electricity when the sun is shining or the wind is blowing), their supplies often don’t match their demand.

The conventional way of supplying power when the demand for electricity peaks is for utility companies to fire up “peaker” plants. But most peakers run on natural gas and are highly polluting.

A wider adoption of utility-scale and distributed energy storage systems and batteries is the answer. Utility-scale energy storage is the use of technologies and practices to store energy on a large scale, often managed by utility, industrial and power companies. Distributed storage systems are smaller in scale and use standalone batteries and electric vehicles (EVs) to store energy. Distributed systems are usually managed at the level of residential and commercial buildings.

Neither of these solutions directly help cut greenhouse gas emissions, but they both facilitate the development of more renewable energy sources and ultimately smooth the transition in the energy system.

While Project Drawdown doesn’t model the growth of energy storage so as to avoid double-counting with renewable energy solutions, it’s clear that their production and adoption need to accelerate, and their cost needs to fall to accelerate the shift to a zero-emission grid.

What We Want to See Improve

Shift Away from Dirty Banks

CBAT has relied on a couple of banks for financing in the last several years. But unfortunately these banks happen to be some of China’s top funders of fossil fuels. Agricultural Bank of China and China Everbright Bank’s investments in tar sands, oil and gas have increased in recent years, and they show no signs of winding these investments down. We urge CBAT to stop enabling these banks and their fossil fuel clients, and instead switch to financial institutions that, as a matter of principle, don’t fund high-emitting sectors. 

Disclose Sustainability Metrics

We know very little about CBAT’s carbon footprint or the carbon footprint throughout CBAT’s supply chain. Although all of CBAT’s suppliers are based in China, the planned expansion of their production capacity leads us to think that the company’s and their supply chain’s emissions may grow in the coming years. To hold them accountable, they need to disclose key sustainability metrics like direct and indirect GHG emissions and the sources of their energy consumption.

Stay Away from the Military

We’re excited about the new lithium batteries that CBAT is developing that can operate in low temperatures. But because the potential applications for these batteries include unmanned drones and aviation, we want CBAT to steer clear of selling these new batteries to militaries or defense contractors. Instead, we urge them to focus on contributing to the wider adoption of EVs and energy storage systems.

Related Battery Stocks in the Climate Index

View All Climate Index Stocks →

Allocated Company Description

0.78%

QuantumScape Corporation (QS)

QuantumScape makes solid-state lithium-ion batteries for electric vehicles. Their battery is lighter and charges faster, key to making EVs more attractive

0.30%

Livent Corporation (LTHM)

Livent is one of the largest lithium producers in the world. Lithium is the key metal in making batteries for electric vehicles and energy storage.

0.19%

Stem, Inc. (STEM)

Stem makes energy storage solutions that optimize energy use through the use of AI. Energy storage is the key to integrating more renewables into the grid

0.03%

Eos Energy Enterprises, Inc. (EOSE)

Eos makes stationary batteries and energy storage systems that can make renewable power more reliable and attractive

0.03%

Romeo Power, Inc. (RMO)

Romeo Power makes lithium-ion battery modules and packs for commercial EVs. High-quality batteries are critical for electrifying transportation

0.02%

CBAK Energy Technology, Inc. (CBAT)

CBAK makes lithium-ion battery packs that can be used in many electric vehicles, tools and energy storage applications, a key to electrifying everything

0.02%

Flux Power Holdings, Inc (FLUX)

Flux Power makes batteries for industrial forklifts and other utility vehicles. Electrifying these vehicles is a key component of solving climate change.

0.02%

Kandi Technologies Group Inc. (KNDI)

Kandi Technologies mass produces entry-level EVs for Chinese consumers and quickly swaps EV batteries. Both are critical for making EVs attractive.

0.02%

KULR Technology Group, Inc. (KULR)

KULR sells thermal management technologies that are used in the lithium-ion batteries to ensure they stay within safe operating temperatures.

0.02%

Westwater Resources, Inc. (WWR)

Westwater Resources mines and purified graphite materials, which is a key component in battery construction. They’re helping expand energy storage

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