The American company NEC Energy Solutions, engaged in the development and production of energy storage systems, announced plans to terminate operations. This decision is due not only to fierce competition in the industry, but also due to the fact that because of the coronavirus pandemic, the company’s attempts to profitably sell its business failed.
The company from Massachusetts for a long time tried to start making a profit, but now customers were announced “Ordered folding” operations. At the same time, NEC intends to complete the development of the launched projects, but will not undertake the creation of something new. Japanese conglomerate NEC Corp., the parent company of NEC Energy Solutions, tried to sell the business, but the economic turmoil following the coronavirus pandemic made it difficult to find a buyer.
NEC was one of the relatively small companies in the battery industry, which nonetheless had global reach. Representative of NEC Corp. said the unit involved in the development and production of energy storage systems has been unprofitable since its founding in 2014. He also noted that the battery market has shown steady growth in recent years, but there is fierce price competition inside it, which was one of the reasons that influenced the decision of NEC to leave the market.
NEC Energy Solutions currently has battery service contracts in place until 2030. The source also notes that many employees will be able to continue to work long enough, as the company intends to complete all the projects that have been started.
If you notice an error, select it with the mouse and press CTRL + ENTER.