Warranties for Battery Energy Storage Systems (BESS) provide mechanisms for buyers and investors to mitigate the technical and operational risks of battery projects, by transferring the risk of defects or performance issues to the manufacturer or the battery vendor.
For energy storage batteries, purchasing a warranty beyond 10 years does not make much sense, as a significant portion of the battery would likely need to be replaced after that period. Insurance can also be obtained. Operating and maintaining batteries is complex due to the reliance on software to optimize performance. The rates of deterioration of the battery depend on how the battery is used.
A 10-year warranty from the vendor guaranteeing that the system will have 75% of year-one capacity is not necessarily beneficial. The system could have 150% of year-one capacity at year 10, but if it's not being dispatched correctly, it provides no value to the host customer.
LG Chem offers an energy throughput warranty, meaning it warrants that the battery will deliver a certain amount of energy over a 10-year life. The number of times a day the battery is cycled affects the battery's lifespan, making energy throughput a crucial factor.
Photograph: Qilai Shen/Bloomberg China’s gigantic battery making company, CATL (or, to give it its full title, the Contemporary Amperex Technology Co Limited) has announced a new type of battery which could spell the end of concerns about how long a vehicle battery might last.
According to CATL, this new battery design shows no degradation at all over 1,000 power cycles. If you fully charged and discharged your car’s battery every day, that would give you almost three years of use with no reduction in performance. The design is the result of a collaboration between CATL and Yutong dating back to 2012.
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