In the energy storage industry, technological capability remains the absolute principle.
This article is 3784 words, about 5.4 minutes

Author | Editor Zheng Wei | I

Source: Rongzhong Finance

(ID: thecapital)
In 2023, known as the first year of liquid flow batteries, after more than a decade of development, multiple companies have announced the production or expansion of liquid flow batteries, and the track is booming. Today, with the continuous release of long-term energy storage demand, liquid flow batteries have finally reached the eve of industrialization, and the outbreak seems to be imminent.

As an innovative R&D and manufacturer of new key materials in the liquid flow battery industry, ZH Energy Storage was established in 2021. With the profound R&D experience and capabilities of its team members, it has always been at the forefront of solving major material problems. It is committed to solving the industry pain point of high initial installation costs for liquid flow batteries by developing low-cost and high-performance revolutionary key materials, making it a long-term, low-cost, and safer large-scale energy storage technology, and helping China achieve its dual carbon goals.

The following is the interview content for our magazine to entertain readers:

What is the market positioning of the company in the field of new energy? What are the competitive advantages?

Xie Wei: ZH Energy Storage is committed to providing revolutionary key materials and energy storage equipment with better performance and lower cost to the liquid flow battery industry. The company's first generation 32kW standardized stack, which has been mass-produced, can achieve an energy efficiency of>80% at a power density of 200mW/cm2, ranking among the leading levels in China. The second generation stack under research can further increase power density by 25%, which is equivalent to reducing the cost of the stack by another 25%. The graphite felt electrode loaded with a catalyst is the first product of its kind launched globally, which solves the problem of unstable catalyst loading. It will help vanadium flow batteries and other new flow battery technologies further improve energy efficiency. In addition, the non fluorinated ion exchange membrane developed by the company has solved the problem of structural instability of this type of membrane in battery operating environments, achieving the same level of performance as the perfluorinated ion exchange membrane DuPont Nafion, while reducing costs by 90%. The new sulfur iron electrolyte being developed by the company can reduce the cost by 90% compared to all vanadium electrolyte, which will reduce the installation cost of the flow battery equipped with this electrolyte to the level of 1-1.5 yuan/Wh, reaching the same price level as lithium-ion batteries.

At present, ZH Energy Storage has built a stack production line with an annual production capacity of 100 megawatt hours, which can provide the market with flow battery stacks or energy storage systems ranging from ten kilowatts to megawatts. At the same time, relying on the founder's nearly 20 years of experience accumulated in the American liquid flow battery industry and the strong collaboration with Professor Liu Suqin from Central South University, we have developed new materials with better performance and lower cost, including loaded catalyst electrodes, non fluorine ion exchange membranes, new sulfur iron electrolytes, etc. All of which have passed pilot tests and entered the mass production preparation stage.

This magazine: Based on our current situation, which tier of the industry are we in and how are we measured? Have you achieved the expected results so far?

Xie Wei: As an innovative R&D and manufacturer of new key materials in the liquid flow battery industry, ZH Energy Storage utilizes the global leading R&D experience and capabilities of its team members to be at the forefront of solving major material problems. In the future, according to the plan, various revolutionary material products will be mass-produced and pushed to the market within one or two years.

This magazine: With today's achievements, what opportunities do you think our company has seized?

Xie Wei: The establishment of ZH Energy Storage seized the opportunity of China's announcement of the "3060 dual carbon target" at the end of 2020. The name "ZH Energy Storage" in the company comes from "carbon neutrality", which laid a "timely" starting point for the company. The company's headquarters is registered in Shenzhen, a city that supports reform and innovation; The R&D center and production base are located in Changsha, a city that positions the energy storage industry as the next core industry, both laying the foundation for the company's geographical advantage. Through strategic cooperation with Professor Liu Suqin from Central South University, a leader in the liquid flow battery industry, ZH Energy Storage has formed a globally leading team for basic research and industrial transformation, known as Renhe.

What are the important milestones in our development so far? At what stages does the company seek capital support? What aspects do you value when choosing an investment institution?

Xie Wei: The important milestones of the company include: reaching a strategic cooperation with Professor Liu Suqin from Central South University in November 2021; In March 2022, obtained exclusive first round financing from Sequoia China; In June 2022, the Changsha R&D Center was completed and put into operation; In November 2022, obtained the second round of financing from Yinshan Capital and Sequoia China; In January 2023, the first demonstration project of a 100 kilowatt flow battery was connected to the grid in Wuhan; In June 2023, the Changsha Liquid Flow Reactor Production Base was completed and put into operation. The current new round of financing will be used for the construction of production lines for catalyst electrodes and non fluorine ion exchange membranes. When choosing an investment institution, two main points are important: first, the capital strength and industry influence of the investment institution; The second is that it can bring resources beyond funding, including industry collaboration, potential customers, etc.

How was our business model explored and is it a mainstream model? What progress has been made compared to traditional methods in the past?

Xie Wei: The business model of ZH Energy Storage is based on the judgment of the founding team on technology and market development. From the first day of entrepreneurship, we have been based on the value that technology should play in the market, constantly communicating needs and understanding policies towards the market. At the same time, we continuously optimize through comprehensive discussions and research with investors, customers, and industry colleagues. We adhere to the core values of technological innovation ability and high-tech barrier products, seek differentiated competitive advantages, and fill the gaps in the industry.

This magazine: Introduce the R&D investment situation and how to maintain innovation power? What are the competitive barriers to the product and how much competitive pressure is there?

Xie Wei: Over 80% of the members of ZH Energy Storage are engaged in product research and engineering technology development, including doctoral and master's degrees from top universities in the world such as Tsinghua University, University of Hong Kong, Central South University, Hunan University, University of Texas, and Carnegie Mellon University. The currently developed material products are all world first exclusive products, which contain a strong foundation of team members who have been deeply cultivating in the field of liquid flow batteries for more than 20 years, and have a very high technological moat.

What is the current stage of commercialization progress and what are the new breakthroughs in landing scenarios? What problems need to be overcome, especially in the early stages of business promotion, and what lessons are worth learning from?

Xie Wei: In terms of liquid flow fuel cells and systems, ZH Energy Storage has successfully achieved the mass production of 32kW standardized fuel cells and has implemented a 100 kilowatt level energy storage demonstration project for grid connection. Currently, a megawatt hour level urban energy storage project is being delivered. ZH Energy Storage focuses on the industrial and commercial energy storage needs both inside and outside the city, using the inherent safety characteristics of liquid flow batteries to address customer safety concerns and provide customers with safe energy storage products with a lifespan of up to 20 years. The high initial installation cost of liquid flow batteries leads to a longer investment return period, greatly reducing the willingness of customers to choose. Therefore, it is necessary to do a good job in calculating the full life cycle electricity cost and calculating the economic total account of investment income to solve customer doubts. To this end, the company developed NeLCOS ® The energy storage calculator has been made available for free to everyone on the company's official website, reducing customer concerns about the cost of liquid flow battery technology. It has received positive feedback and brought more project consultants to the company.

This magazine: As a developing company, where are the risks still reflected (lack of money, lack of people, lack of resources)? How to resolve risks as early as possible?

Xie Wei: For small startups, lack of money, people, and resources are eternal risks. In our co creation team, there are continuous entrepreneurs with 20 years of experience, as well as CEOs who have managed listed companies. We have a clear understanding and prediction of these risks, so at the beginning of the company's establishment, we developed targeted strategies to address these needs separately and gradually reduce the risks. This reflects the importance of an experienced management team in managing company risks.

This magazine: Do you have a long-term goal and how do you plan to achieve it in stages? What efforts are needed to achieve this goal?

Xie Wei: The long-term goal of ZH Energy Storage is to become a leading global manufacturer of key materials and energy storage equipment for flow batteries. In other words, it aims to reduce the initial installation cost of flow batteries by reducing material costs and improving efficiency, making it an energy storage technology that is highly competitive in price compared to lithium batteries. To achieve this goal, it is necessary to mass produce and sell the company's materials and stack products one by one. In terms of fuel cells, by continuously increasing power density, the materials and costs required for fuel cells can be reduced; In terms of electrodes, improving battery energy efficiency and electrolyte utilization through loading catalysts; In terms of membranes, the cost of membranes can be reduced by commercializing non fluorine ion exchange membranes; In terms of electrolyte, replacing it with sulfur iron electrolyte can reduce the cost of flow batteries.

What qualities should one possess to win on this track? Do we all possess these qualities? What shortcomings do we need to make up for?

Xie Wei: To win on a track, it is usually necessary to have at least one core competitiveness. These core competencies can be the ability to continuously iterate high-tech barrier products, the ability to achieve rapid scale production through operational capital, or the ability to obtain important raw materials, large orders, and other resources. The core competitiveness of ZH Energy Storage lies in the ability to continuously develop high-tech barrier products, while the other two core competencies mentioned above need to be continuously enhanced through equity financing, strategic cooperation, and other means.

This magazine: New energy is a heavy asset, long-term industry. Is this industry a blue ocean or a red ocean? What are the changes in the development trends of the future industry, and what are the opportunities and challenges? What is the level of support from national policies for the development of this industry?

Xie Wei: The energy storage industry is still in its early stages, and there is a blue ocean ahead. However, the current situation of expanding production capacity far exceeds market demand, which is somewhat similar to the production capacity explosion period of the photovoltaic 1.0 era more than a decade ago. After a bloody price war, who can overcome the fog of the battlefield and ultimately persevere to become the big winner in the second half, requires extremely high business intelligence and outstanding core competitiveness.

This magazine: Talking about the founder's educational and previous career experiences, what help has it provided for your current work and management?

Xie Wei: I obtained a Bachelor's and Master's degree in Materials from Tsinghua University and a Ph.D. in Chemical Engineering from the University of Texas at Austin. During my doctoral studies, I began researching ion exchange membranes and ventured into the fuel cell and flow cell industries. After graduation, I joined United Technologies Group, the largest flow cell development company in the United States, responsible for the development of flow cell systems and ion exchange membranes. In 2016, the company successfully transformed its all vanadium flow battery technology into an industry, establishing the largest flow battery manufacturer in the United States, Vionx Energy, and continuously providing technical support to the manufacturer, maintaining its stack technology at a global leading level. Ultimately, the company was acquired by the largest vanadium mining company in North America, LargeResource, in 2021 to help the mining company enter the energy storage industry. In the two years leading up to the establishment of ZH Energy Storage, I joined the renowned long-term energy storage unicorn company Form Energy in the United States, responsible for the technological industrialization of products. Over the past two years, I have accumulated a wealth of experience in product development, company operation, financing management, and have made sufficient preparations for building ZH Energy Storage.

Our magazine: During work, the development of enterprises is destined to go through storms, with many uncertainties and high risks. What do you think is the most difficult part? Is there any moment when you can't hold on, how did you survive?

Xie Wei: As the technical leader among the co founders, I need to take the highest responsibility for the company's product development and manufacturing. Therefore, the most difficult moments usually occur when product development is hindered. However, in the spirit of the company's values of "innovation, responsibility, perseverance, rigor, and collaboration", my R&D team and I will work together and persevere, using various systematic and scientific methods to break down problems, analyze root causes, propose targeted solutions, design experiments, and verify, ultimately solving difficulties, achieving breakthrough progress, and enjoying the challenge and sense of achievement of crossing mountains and ridges in the process of progress.

Is there any additional information sharing in this issue?

Xie Wei: We hope to take this opportunity to call on colleagues in the field of liquid flow batteries to work together to solve the biggest challenge, risk, and pain point in the industry - the problem of high initial installation costs. Let liquid flow battery products become widely accepted technologies by customers, achieve its large-scale implementation and application, and gain more market share in the trillion dollar energy storage market, helping China achieve its dual carbon goals as soon as possible!

In the energy storage industry, technological capability remains the absolute principle.
This article is 3784 words, about 5.4 minutes

Author | Editor Zheng Wei | I

Source: Rongzhong Finance

(ID: thecapital)
In 2023, known as the first year of liquid flow batteries, after more than a decade of development, multiple companies have announced the production or expansion of liquid flow batteries, and the track is booming. Today, with the continuous release of long-term energy storage demand, liquid flow batteries have finally reached the eve of industrialization, and the outbreak seems to be imminent.

As an innovative R&D and manufacturer of new key materials in the liquid flow battery industry, ZH Energy Storage was established in 2021. With the profound R&D experience and capabilities of its team members, it has always been at the forefront of solving major material problems. It is committed to solving the industry pain point of high initial installation costs for liquid flow batteries by developing low-cost and high-performance revolutionary key materials, making it a long-term, low-cost, and safer large-scale energy storage technology, and helping China achieve its dual carbon goals.

The following is the interview content for our magazine to entertain readers:

What is the market positioning of the company in the field of new energy? What are the competitive advantages?

Xie Wei: ZH Energy Storage is committed to providing revolutionary key materials and energy storage equipment with better performance and lower cost to the liquid flow battery industry. The company's first generation 32kW standardized stack, which has been mass-produced, can achieve an energy efficiency of>80% at a power density of 200mW/cm2, ranking among the leading levels in China. The second generation stack under research can further increase power density by 25%, which is equivalent to reducing the cost of the stack by another 25%. The graphite felt electrode loaded with a catalyst is the first product of its kind launched globally, which solves the problem of unstable catalyst loading. It will help vanadium flow batteries and other new flow battery technologies further improve energy efficiency. In addition, the non fluorinated ion exchange membrane developed by the company has solved the problem of structural instability of this type of membrane in battery operating environments, achieving the same level of performance as the perfluorinated ion exchange membrane DuPont Nafion, while reducing costs by 90%. The new sulfur iron electrolyte being developed by the company can reduce the cost by 90% compared to all vanadium electrolyte, which will reduce the installation cost of the flow battery equipped with this electrolyte to the level of 1-1.5 yuan/Wh, reaching the same price level as lithium-ion batteries.

At present, ZH Energy Storage has built a stack production line with an annual production capacity of 100 megawatt hours, which can provide the market with flow battery stacks or energy storage systems ranging from ten kilowatts to megawatts. At the same time, relying on the founder's nearly 20 years of experience accumulated in the American liquid flow battery industry and the strong collaboration with Professor Liu Suqin from Central South University, we have developed new materials with better performance and lower cost, including loaded catalyst electrodes, non fluorine ion exchange membranes, new sulfur iron electrolytes, etc. All of which have passed pilot tests and entered the mass production preparation stage.

This magazine: Based on our current situation, which tier of the industry are we in and how are we measured? Have you achieved the expected results so far?

Xie Wei: As an innovative R&D and manufacturer of new key materials in the liquid flow battery industry, ZH Energy Storage utilizes the global leading R&D experience and capabilities of its team members to be at the forefront of solving major material problems. In the future, according to the plan, various revolutionary material products will be mass-produced and pushed to the market within one or two years.

This magazine: With today's achievements, what opportunities do you think our company has seized?

Xie Wei: The establishment of ZH Energy Storage seized the opportunity of China's announcement of the "3060 dual carbon target" at the end of 2020. The name "ZH Energy Storage" in the company comes from "carbon neutrality", which laid a "timely" starting point for the company. The company's headquarters is registered in Shenzhen, a city that supports reform and innovation; The R&D center and production base are located in Changsha, a city that positions the energy storage industry as the next core industry, both laying the foundation for the company's geographical advantage. Through strategic cooperation with Professor Liu Suqin from Central South University, a leader in the liquid flow battery industry, ZH Energy Storage has formed a globally leading team for basic research and industrial transformation, known as Renhe.

What are the important milestones in our development so far? At what stages does the company seek capital support? What aspects do you value when choosing an investment institution?

Xie Wei: The important milestones of the company include: reaching a strategic cooperation with Professor Liu Suqin from Central South University in November 2021; In March 2022, obtained exclusive first round financing from Sequoia China; In June 2022, the Changsha R&D Center was completed and put into operation; In November 2022, obtained the second round of financing from Yinshan Capital and Sequoia China; In January 2023, the first demonstration project of a 100 kilowatt flow battery was connected to the grid in Wuhan; In June 2023, the Changsha Liquid Flow Reactor Production Base was completed and put into operation. The current new round of financing will be used for the construction of production lines for catalyst electrodes and non fluorine ion exchange membranes. When choosing an investment institution, two main points are important: first, the capital strength and industry influence of the investment institution; The second is that it can bring resources beyond funding, including industry collaboration, potential customers, etc.

How was our business model explored and is it a mainstream model? What progress has been made compared to traditional methods in the past?

Xie Wei: The business model of ZH Energy Storage is based on the judgment of the founding team on technology and market development. From the first day of entrepreneurship, we have been based on the value that technology should play in the market, constantly communicating needs and understanding policies towards the market. At the same time, we continuously optimize through comprehensive discussions and research with investors, customers, and industry colleagues. We adhere to the core values of technological innovation ability and high-tech barrier products, seek differentiated competitive advantages, and fill the gaps in the industry.

This magazine: Introduce the R&D investment situation and how to maintain innovation power? What are the competitive barriers to the product and how much competitive pressure is there?

Xie Wei: Over 80% of the members of ZH Energy Storage are engaged in product research and engineering technology development, including doctoral and master's degrees from top universities in the world such as Tsinghua University, University of Hong Kong, Central South University, Hunan University, University of Texas, and Carnegie Mellon University. The currently developed material products are all world first exclusive products, which contain a strong foundation of team members who have been deeply cultivating in the field of liquid flow batteries for more than 20 years, and have a very high technological moat.

What is the current stage of commercialization progress and what are the new breakthroughs in landing scenarios? What problems need to be overcome, especially in the early stages of business promotion, and what lessons are worth learning from?

Xie Wei: In terms of liquid flow fuel cells and systems, ZH Energy Storage has successfully achieved the mass production of 32kW standardized fuel cells and has implemented a 100 kilowatt level energy storage demonstration project for grid connection. Currently, a megawatt hour level urban energy storage project is being delivered. ZH Energy Storage focuses on the industrial and commercial energy storage needs both inside and outside the city, using the inherent safety characteristics of liquid flow batteries to address customer safety concerns and provide customers with safe energy storage products with a lifespan of up to 20 years. The high initial installation cost of liquid flow batteries leads to a longer investment return period, greatly reducing the willingness of customers to choose. Therefore, it is necessary to do a good job in calculating the full life cycle electricity cost and calculating the economic total account of investment income to solve customer doubts. To this end, the company developed NeLCOS ® The energy storage calculator has been made available for free to everyone on the company's official website, reducing customer concerns about the cost of liquid flow battery technology. It has received positive feedback and brought more project consultants to the company.

This magazine: As a developing company, where are the risks still reflected (lack of money, lack of people, lack of resources)? How to resolve risks as early as possible?

Xie Wei: For small startups, lack of money, people, and resources are eternal risks. In our co creation team, there are continuous entrepreneurs with 20 years of experience, as well as CEOs who have managed listed companies. We have a clear understanding and prediction of these risks, so at the beginning of the company's establishment, we developed targeted strategies to address these needs separately and gradually reduce the risks. This reflects the importance of an experienced management team in managing company risks.

This magazine: Do you have a long-term goal and how do you plan to achieve it in stages? What efforts are needed to achieve this goal?

Xie Wei: The long-term goal of ZH Energy Storage is to become a leading global manufacturer of key materials and energy storage equipment for flow batteries. In other words, it aims to reduce the initial installation cost of flow batteries by reducing material costs and improving efficiency, making it an energy storage technology that is highly competitive in price compared to lithium batteries. To achieve this goal, it is necessary to mass produce and sell the company's materials and stack products one by one. In terms of fuel cells, by continuously increasing power density, the materials and costs required for fuel cells can be reduced; In terms of electrodes, improving battery energy efficiency and electrolyte utilization through loading catalysts; In terms of membranes, the cost of membranes can be reduced by commercializing non fluorine ion exchange membranes; In terms of electrolyte, replacing it with sulfur iron electrolyte can reduce the cost of flow batteries.

What qualities should one possess to win on this track? Do we all possess these qualities? What shortcomings do we need to make up for?

Xie Wei: To win on a track, it is usually necessary to have at least one core competitiveness. These core competencies can be the ability to continuously iterate high-tech barrier products, the ability to achieve rapid scale production through operational capital, or the ability to obtain important raw materials, large orders, and other resources. The core competitiveness of ZH Energy Storage lies in the ability to continuously develop high-tech barrier products, while the other two core competencies mentioned above need to be continuously enhanced through equity financing, strategic cooperation, and other means.

This magazine: New energy is a heavy asset, long-term industry. Is this industry a blue ocean or a red ocean? What are the changes in the development trends of the future industry, and what are the opportunities and challenges? What is the level of support from national policies for the development of this industry?

Xie Wei: The energy storage industry is still in its early stages, and there is a blue ocean ahead. However, the current situation of expanding production capacity far exceeds market demand, which is somewhat similar to the production capacity explosion period of the photovoltaic 1.0 era more than a decade ago. After a bloody price war, who can overcome the fog of the battlefield and ultimately persevere to become the big winner in the second half, requires extremely high business intelligence and outstanding core competitiveness.

This magazine: Talking about the founder's educational and previous career experiences, what help has it provided for your current work and management?

Xie Wei: I obtained a Bachelor's and Master's degree in Materials from Tsinghua University and a Ph.D. in Chemical Engineering from the University of Texas at Austin. During my doctoral studies, I began researching ion exchange membranes and ventured into the fuel cell and flow cell industries. After graduation, I joined United Technologies Group, the largest flow cell development company in the United States, responsible for the development of flow cell systems and ion exchange membranes. In 2016, the company successfully transformed its all vanadium flow battery technology into an industry, establishing the largest flow battery manufacturer in the United States, Vionx Energy, and continuously providing technical support to the manufacturer, maintaining its stack technology at a global leading level. Ultimately, the company was acquired by the largest vanadium mining company in North America, LargeResource, in 2021 to help the mining company enter the energy storage industry. In the two years leading up to the establishment of ZH Energy Storage, I joined the renowned long-term energy storage unicorn company Form Energy in the United States, responsible for the technological industrialization of products. Over the past two years, I have accumulated a wealth of experience in product development, company operation, financing management, and have made sufficient preparations for building ZH Energy Storage.

Our magazine: During work, the development of enterprises is destined to go through storms, with many uncertainties and high risks. What do you think is the most difficult part? Is there any moment when you can't hold on, how did you survive?

Xie Wei: As the technical leader among the co founders, I need to take the highest responsibility for the company's product development and manufacturing. Therefore, the most difficult moments usually occur when product development is hindered. However, in the spirit of the company's values of "innovation, responsibility, perseverance, rigor, and collaboration", my R&D team and I will work together and persevere, using various systematic and scientific methods to break down problems, analyze root causes, propose targeted solutions, design experiments, and verify, ultimately solving difficulties, achieving breakthrough progress, and enjoying the challenge and sense of achievement of crossing mountains and ridges in the process of progress.

Is there any additional information sharing in this issue?

Xie Wei: We hope to take this opportunity to call on colleagues in the field of liquid flow batteries to work together to solve the biggest challenge, risk, and pain point in the industry - the problem of high initial installation costs. Let liquid flow battery products become widely accepted technologies by customers, achieve its large-scale implementation and application, and gain more market share in the trillion dollar energy storage market, helping China achieve its dual carbon goals as soon as possible!