(Yicai) Sept. 11 -- Contemporary Amperex Technology is in advanced talks to buy Chinese solar panel manufacturer Das Solar, an acquisition that would mark the battery giant’s entry into photovoltaic module production, according to a media report.

After failing to acquire a majority stake in solar cell supplier Runergy New Energy Technology, CATL is now in negotiations to acquire Das Solar, LatePost Auto reported on Sept. 9, citing insiders.

CATL offered CNY4 billion (USD562.1 million) for 51 percent of Runergy after the latter failed to go public on Shenzhen's ChiNext board in June last year, the insiders said. Tongwei Group, the world's largest solar silicon producer, outbid CATL by offering CNY5 billion last month.

The Das Solar talks may conclude within a month, the insiders said, but other solar industry players are also interested in acquiring the Quzhou-based company.

Whether CATL pushes forward to acquire Da Solar depends on whether it believes the solar industry cycle has bottomed out, one of the sources told LatePost Auto. “If CATL thinks PV companies will continue to incur losses and their valuations will keep declining, it may take its time,” the person noted.

Since the second quarter, CATL has approached a number solar module and cell producers in an effort to enter the PV industry. In June, its subsidiary Contemporary Green Energy bought Liyang Leye Photovoltaic Energy, a Chinese firm mainly engaged in the construction of small PV power stations and generation equipment.

The combination of solar power generation and lithium battery storage is increasingly being seen as a key solution for stabilizing renewable energy supply, which is highly variable due to changing weather conditions. By introducing lithium energy storage batteries at solar power plants, electricity could be stored up in periods of excess supply and then discharged when needed.

Moreover, modules account for about half of a solar systems' cost, so CATL could significantly enhance its vertical integration in the new energy field if it manufactures its own panels.

If the Das Solar acquisition is completed, Ningde-based CATL would join Tesla and BYD in being able to generate energy through its own PV modules, store energy with its energy storage batteries, and consume energy at its battery charging and swapping stations.

Founded in 2018, DAS Solar researches, develops, makes, and sells high-efficiency solar cells, modules, and system applications. Its N-type tunnel oxide passivated contact products have higher power generation efficiency than those of industry leaders such as Trina Solar and JA Solar Technology.

In the first half of the year, DAS Solar was the world's eighth-largest PV module manufacturer by shipments. Last month, the firm pulled its filing to list on the ChiNext. The company has so far completed nine rounds of fundraising.

Editor: Futura Costaglione