Total refinery in Germany. Photo: Andia/UIG via Getty Images
Oil-and-gas giant Total on Thursday announced a joint venture with the Tianneng Group, a Chinese battery maker, to expand production in China.
Why it matters: It's the latest sign of oil majors' deepening forays into energy storage tech with vehicle and power grid applications.
- And oil giants — including Shell, BP and Total — are moving into electric vehicle-related businesses more widely with investments in EV charging companies, battery startups and more.
Driving the news: Total said its battery subsidiary Saft, which it acquired in 2016, will have a 40% share of the lithium-ion battery partnership with Tianneng. Electric bikes, electric vehicles and power storage are all target markets, they said. They did not provide information on the deal's value.
What they're saying: Total CEO Patrick Pouyanné said in a statement that the move will give Saft "access to China’s booming battery market as well as highly-competitive mass production capacity to accelerate its growth."
- "This is a first strategic move driven by Total, following the acquisition of Saft in 2016, to grow Saft's activity in China, the world’s largest renewables market, as well as in the [energy storage solutions] segment as an essential component to the large scale development of intermittent renewable energies," he said.
- Energy group Total's Saft arm strikes China batteries deal (Reuters)
- Shell snaps up EV charging player Greenlots
- BP moves into China's electric vehicle charging market