Battery Manufacturer Hithium to Be Reinsured by Munich Re
MUNICH, October 26, 2023--(BUSINESS WIRE)--Hithium, the stationary battery producer, announced the agreement with Munich Re to provide warranty reinsurance for its energy storage systems (ESS). The reinsurer will cover both product and performance warranties. The agreement will thus reduce ESS project owners’ risk as well as Hithium’s, providing system owners with coverage even in case of a manufacturer insolvency while also shielding Hithium from excessive warranty costs and protecting the company’s balance sheet.
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The warranties against performance degradation and the risk of defects, with coverage of up to 15 years, will be among the longest-term warranty insurances available in the energy storage industry. The project coverage also enables Hithium to provide a flexible insurance structure. Munich Re’s backing for larger-scale projects is reflected in the "Warranty Partner Label Agreement" it has granted Hithium.
As one of the global leaders in reinsurance, Munich Re enables emerging business models like stationary energy storage by fostering trust, financial security, and technical expertise. Prior to undertaking a new warranty insurance obligation, the company completes a technical due diligence process to assure product and manufacturer viability.
ESS project developers are currently positioned to benefit from a fast-growing market for energy storage, due to the central role the systems play in the transition to renewable energies by making them reliably available around the clock. It is crucial for developers and their investors to be able to establish the bankability and security of projects. As energy storage technology becomes more complex and large-scale systems integrate multiple high-tech components, moreover, the need for warranty insurance has gained importance.
Hithium Senior Director Product & Marketing Winfried Wahl commented: "Munich Re sets the global standard for due diligence and financial security in energy storage. We are very proud to take this step and be able to offer our clients and investors this level of warranty."
Hithium is on track to have 70 GWh of production capacity by the end of 2023, manufacturing cells, battery modules, cabinets and container systems, with 11 GWh delivered since the company was founded in 2019. Hithium is already cooperating with TÜV Rheinland’s China subsidiary on the testing and certification of large-scale energy storage systems.
About HiTHIUM
Founded in 2019, HiTHIUM is a leading manufacturer of top-quality stationary energy storage products for utility-scale as well as commercial and industrial applications. With four distinct R&D centers and multiple "intelligent" production facilities, HiTHIUM’s innovations include groundbreaking safety improvements to its lithium-ion batteries as well as increases in lifecycle. With many decades of cumulative experience in the field among its founders and senior executives, HiTHIUM leverages its specialization in BESS to deliver partners and customers unique advances in energy storage. The company is based in Xiamen, China, with further locations for production, research, or sales in Shenzhen, Munich, Dubai, and California. HiTHIUM has shipped 11 GWh of battery capacity, 5 GWh in 2022 alone, and is expanding its production capacity to 70 GWh by the end of 2023.
About Munich Re
Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The Group consists of the reinsurance and ERGO business segments, as well as the asset manager MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake to Hurricane Ian in 2022. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies or cyber risks. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individual.
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