Chinese manufacturer of lithium-ion batteries NPP Power has penned a distribution agreement with South Africa’s This Tree Technology to sell and distribute its products.

NPP Power says the deal is a catalyst in driving energy transition in South Africa and the continent.

The company operates five different production facilities, including one in Ho Chi Minh City, Vietnam, and four in China (Dongguan, Guangzhou, Henan and Hunan) and has overseas offices.

NPP Power, which is ranked fourth biggest manufacturer of lithium-ion batteries in China, is entering the South African market for the first time.

This, as the second-largest economy in sub-Saharan Africa, is facing crippling power cuts, which has pushed the country to increase use of renewable energy.

As state-owned energy monopoly, Eskom, has been implementing a programme of controlled blackouts, South Africa has, in recent months, witnessed an upswing in renewable energy consumption, as local businesses and households seek alternative sources for affordable and uninterrupted power supply.

According to Gaylor Montmasson-Clair, senior economist, Trade & Industrial Policy Strategies, South Africa’s imports of solar panels reached record levels for the country at R3.6 billion in Q1 2023, three times higher than the previous quarter.

"NPP has recognised the current capacity gaps in South Africa. While the problem of power supply is a global challenge, South Africa has experienced severe power outages and we hope to fill the gaps so that we can enable sustainable power supply for both SMEs and large corporates. We have developed scalable solutions for residential consumption and we see further demand in this area," Jason Wong, sales director at NPP.

ThisTree Technology CEO SA, Lloyd Nedohe, hailed the deal, saying the arrival of the company in South Africa will be "critical in achieving NetZero and building energy independence for consumers facing severe grid constraints."

He comments: "We have a range of technology solutions, from ICT to energy and digital solutions, to support various forms of transition. 

"Battery Energy Storage System portfolio is important when it comes to South Africa's investment plans for a just energy transition, and we are grateful for the NPP's unwavering confidence in us.

“Their applications will help us with customers using base stations, solar power grids, electric vehicles, UPS systems and data centres."

"These are exciting times and we have lithium-ion batteries on offer for customers of all sizes"