China Merchants Securities (CMSC) released a research report stating that recent disclosures indicate Longi Green Energy Technology (601012.SH) has made progress in the energy storage sector, announcing its participation in an industry collaboration. The initiative will support NeoVolta (NEOV.US) and Jingkong Energy in establishing a battery energy storage system in the United States, focusing on large-scale storage and commercial & industrial storage business. US energy storage demand is clear and offers strong profitability, primarily driven by a combination of factors including weak grid infrastructure, booming data center demand, and manufacturing reshoring. This move reflects the adaptive strategies domestic leading manufacturers are taking to expand into high-value overseas markets. The main views of CMSC are as follows:
Longi plans to acquire Jingkong Energy to enter the energy storage industry. According to a disclosure by the Shaanxi Provincial Market Supervision and Administration on November 13, 2025, Longi Green Energy Technology intends to obtain approximately 62% of the voting rights in Jingkong Energy through share acquisition, capital increase investment, and entrustment of voting rights. Currently, the legal representative and senior management of Jingkong Energy have been changed to Longi-affiliated leaders. Founded in 2015, Jingkong Energy has a global presence in the energy storage sector, with business covering mainland China, Europe, North America, Australia, and other markets. Its cumulative global grid-connected capacity exceeds 12GWh, with a global production capacity scale of 31GWh, including 5GWh of energy storage production capacity in Atlanta, USA.
Partnering with NeoVolta to target US large-scale and C&I storage. NeoVolta recently disclosed that Longi's subsidiary, Jingkong Energy, will establish a joint venture, NeoValta Power, with NeoVolta, focusing on the US large-scale storage and commercial & industrial storage markets. NeoVolta will hold a 60% stake, Jingkong Energy will hold 20%, and the remaining 20% will be held by strategic investors. The joint venture is expected to achieve 2GWh of production capacity by mid-2026, expandable to 8GWh, and this capacity will comply with FEOC standards. NeoVolta was formerly a US-based company focused on residential storage. Since the appointment of a former Tesla Energy executive as CEO in April 2024, the company has developed rapidly. In Q3 2025, it achieved revenue of $6.65 million, surging 1027% year-on-year and increasing 40% quarter-on-quarter.
The US energy storage market holds significant potential; focus on domestic manufacturers' innovative participation models. The US grid infrastructure is weak, and driven by booming data center demand, manufacturing reshoring, and other factors, the demand for energy storage is clear and offers good profitability. However, due to trade barriers such as FEOC scrutiny, direct participation by domestic companies is challenging. Recently, several companies, including Canadian Solar and Longi, have undertaken related innovative attempts, suggesting domestic manufacturers still have the potential to secure a position in the US market. Companies recommended for attention include: Sungrow Power Supply Co., Ltd., Longi Green Energy Technology, Canadian Solar Inc., Solaredge Technologies, Trina Solar Co., Ltd., Kehua Data Co., Ltd., Hyperstrong, Xidian New Energy, Sinexcel Electric Co., Ltd., and Sineng Electric Co., Ltd.
Risk warnings: Further escalation of trade barriers, industry demand falling short of expectations, and intensifying industry competition.
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