Itochu to market cheaper battery backup system for buildings

System uses Samsung SDI Company's  lithium ion batteries.

Itochu Corporation this month will start selling an electrical storage system for offices and retail businesses priced at about half that of currently available systems. Itochu targets sales of 200 units in fiscal 2014.

The system uses Samsung SDI Company’s lithium ion batteries that are much cheaper than Japanese batteries. Using the Samsung products will help cut cost below US$51,000. The unit slated for initial sale has a capacity of 16.8 kWh.

Other lithium ion battery systems for commercial buildings with storage capacities exceeding 10 kWh are already being mass-produced by competitors but these have are expensive investments for companies at US$7,000 per kWh of storage capacity.

By partnering with Samsung SDI, Itochu intends to meet demand for cost-saving backup devices for less than US$3,000 per kWh of capacity.

The domestic market for stationary electrical storage systems is expected to double between fiscal 2012 and 2015 to 1.26 million kWh, according to Yano Research Institute.