Longi(SH:601012)2026-01-23 02:25Summary of NEOV Partnership and Energy Storage Development Company and Industry Involved - The partnership involves 隆基股份 (LONGi Green Energy) and its subsidiary 精控能源 (Jingkong Energy) collaborating with NEOV, a small but rapidly growing company listed in the US [1][2] Core Points and Arguments - The joint venture will establish a 2GWh energy storage battery production capacity in North America, expected to reach full production by mid-2026, with a long-term goal of expanding to 8GWh [1] - NEOV has shown impressive revenue growth in recent quarters, with year-over-year increases of 600%, 700%, and 1000% respectively [1] - The production capacity will be allocated with 75% for large-scale storage and 25% for commercial storage [1] - The construction timeline includes equipment arrival in March, site preparation in April, and production ramp-up from May to June, with full production starting on July 1 [1] - Currently, battery cells are sourced from China, with plans to shift to domestic production in the US starting in 2027 [1] Additional Important Content - The joint venture fully complies with the Inflation Reduction Act (IRA) requirements, ensuring eligibility for government subsidies and market access [2] - The company is optimistic about demand post-capacity deployment, citing: - A partnership with Luminia for a 160MWh framework agreement signed in November 2025, which has already driven commercial storage orders [2] - A $1.3 million private placement with IGC, with $700,000 allocated for capacity construction; IGC has a reserve of hundreds of MWh in large storage projects [2] - 精控 will introduce existing projects into the joint venture, while 隆基 is expected to provide some orders to the joint venture until 2027 [2] - Positive cash flow is anticipated upon production commencement [2] - Once the joint venture is established, the company will be among the few that can cover the entire vertical field of residential, commercial, and large-scale energy storage in the US [3] - Historically, the market has been dominated by Chinese enterprises, and the company aims to leverage its US-manufactured joint venture to gain a differentiated advantage [4]