Batteries (Russian market)

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2024: State purchases of foreign lead batteries are prohibited in Russia

The Russian government has imposed a ban on state purchases of foreign lead batteries to start piston engines. The corresponding decree, signed by Prime Minister Mikhail Mishustin, amends the regulation of the purchase of foreign-made industrial goods by state and municipal bodies. This became known on June 27, 2024.

According to the Interfax agency, the restriction does not apply to products produced in the countries of the Eurasian Economic Union (EAEU). As the newspaper notes, this decision is associated with an increase in the production of lead batteries in Russia.

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The new rules are designed to ensure guaranteed demand for the products of Russian manufacturers of lead batteries in purchases for state and municipal needs. The agency clarifies that these batteries are used in transport engineering, the production of generators, pumps and other types of equipment.

According to the Interfax agency, this decision was made due to the fact that the current production volumes of lead batteries in Russia make it possible to fully meet the needs of state and municipal customers.

The ban is part of a broader strategy to import substitution and support domestic producers. Interfax notes that such measures have already been applied earlier in relation to other categories of industrial goods.

The materials to the signed decree say: "The decision was made in connection with the increase in the production of lead batteries in Russia, which makes it possible to fully ensure the procurement of such products for state and municipal needs."

Industry experts expect that this restriction could lead to increased investment in domestic battery production and stimulate the development of innovations in this area.^[1]

2023: Russia created a roadmap for the development of batteries for 127 billion rubles

On March 24, 2023, RFA Deputy Prime Minister Novak held a meeting on the development of high-tech energy storage systems and instructed the Ministry of Industry and Trade, together with the Ministry of Finance, Rosatom and InEnergy, to work out financing for the activities of the corresponding roadmap. This was reported by the press service of the Cabinet. Read more here.

2022: Moscow enterprises increased the annual supply of batteries by 6.6 times

In 2022, Moscow manufacturers of electric batteries shipped products worth 1.4 billion rubles, which is 6.6 times more than a year earlier. Such data in early March 2023 were cited by the deputy mayor of the city on economic policy and property and land relations Vladimir Efimov. Read more here.

2020: Electric Vehicle & Enterprise Battery Market Valued at $44M

The Russian market for batteries for electric vehicles and enterprises at the end of 2020 amounted to $44 million, calculated in the consulting company KPMG (data released in mid-February 2022). The capacity of the sold electricity storage reached 126 MW * h.

Experts did not compare with 2019, but noted that the market is on the rise largely due to the development of electric transport in Russia, as well as the more intensive use of industrial energy storage and the integration of batteries with renewable energy sources, the authors of the study believe. In 2025, more than half of the total capacity of the batteries produced (2.8 GWh) will be consumed by electric vehicles, the researchers predict.

The Russian market for batteries for electric vehicles and enterprises is estimated at $44 million in 2020

It is expected that by 2030 the capacity of the Russian electricity storage market will grow to 25.5 GWh and $1.2 billion. The average annual growth rate is projected at 39%.

According to analysts at Alto Consulting Group, in 2020, 7,552,797 lead batteries were produced in Russia to start piston engines, which is 5.9% less than a year earlier. The Volga Federal District with a share of about 42.7% became the leader in the production of lead batteries for starting piston engines in units of the total volume produced in 2020.

In the period 2017-2020. the average prices of manufacturers for engine batteries increased by 27%, from 2.5 million rubles per ton to 3.2 million rubles. The largest increase in average producer prices occurred in 2019, then the growth rate was 27.9%.^[2]

The representative of the Ministry of Industry and Trade reminded the publication that at the end of 2021 a plan for the development of the industry of energy storage systems in the Russian Federation was approved, including measures necessary to stimulate demand growth among consumers, scientific developments and localization of production "along the entire production chain."

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