European utility-scale energy storage market
China-based lithium-ion battery manufacturer, Contemporary Amperex Technology Co. Limited (CATL) is expanding its battery energy storage system operations in Europe as utility-scale storage demand increases along with grid flexibility requirements. The company operates across the battery value chain, including cell development, system integration, grid-connection testing, and end-of-life recycling.
CATL expects Europe’s newly installed BESS capacity to reach 29.7 GWh in 2025, representing 36% year-on-year growth. Utility-scale projects are projected to account for approximately 55% of new capacity additions, reflecting rising grid-side demand. The company also identifies a widening gap between Europe’s projected installed BESS capacity of around 400 GWh and a flexibility requirement estimated at 780 GWh by 2029, indicating continued requirements for large-scale storage deployment.
According to Hank Zhao, Chief Technology Officer of CATL, the company is based on experience from more than 2,000 energy storage system projects globally, with no recorded safety incidents to date. He stated that CATL applies over 7,000 quality control checkpoints and conducts extensive in-house testing across system components. CATL has also developed Europe-specific BESS solutions designed to address regional infrastructure constraints, including noise limitations and integration with existing grid assets.
CATL supports its energy storage offerings with system-level verification infrastructure designed to validate performance, safety, and reliability prior to project delivery. The company reports conducting more than 300 tests across its storage products, including over 50 safety tests, more than 180 reliability tests, and over 100 performance tests. These assessments cover individual battery cells, battery packs, containerized systems, power conversion system (PCS) integration, and complete battery energy storage systems. Testing scenarios include extreme temperature operation, electrical abuse conditions, large-scale fire testing, over-discharge protection, electrical container performance, and system-level grid interaction.
System verification and laboratory capabilities
The company has established a System Development and Integration Laboratory supporting early-stage validation of BESS, PCS, and energy management system (EMS) interoperability. The facility includes China’s first visible 6 MW PCS charging and discharging system, dual-channel charging capability, and AC 35 kV and DC 2.5 kV ultra-high-voltage container testing systems. The laboratory cluster covers approximately 11,000 square metres and supports multi-megawatt charge and discharge testing above 5 MW before site deployment, enabling grid-code compliance checks and system communication validation.
Product portfolio and battery lifecycle operations
In parallel, CATL operates a closed-loop recycling network through its subsidiary Brunp Recycling, covering battery material recovery and reuse at end of life. The company’s utility-scale BESS portfolio for Europe includes the Tener-S and Tener-Stack products, which are based on 565 Ah lithium iron phosphate battery cells. These systems are designed for high-density, grid-scale applications, with specifications focused on efficiency, safety, lifecycle performance, and reduced system footprint to support renewable energy integration at scale.