CATL to Supply 2,400MWh of Battery Storage for Edify Energy’s Australian Hybrid Projects

Why It Matters

The partnership provides firmed low‑carbon electricity to Rio Tinto’s aluminium operations while de‑risking the projects, accelerating Australia’s grid‑scale storage rollout and showcasing the viability of large hybrid solar‑plus‑storage assets.

Key Takeaways

• CATL supplies 2,400 MWh battery storage for Queensland hybrid plants
• Projects total 600 MW capacity, aiming online by 2028
• Rio Tinto will purchase 90% of power under 20‑year deal
• Federal Capacity Investment Scheme adds a second revenue backstop
• Reverse DC‑coupled design improves efficiency and dispatch flexibility

Pulse Analysis

The Australian grid is undergoing a rapid transition toward renewable generation, and large‑scale battery storage is becoming a critical complement. Edify Energy’s Smoky Creek and Guthrie’s Gap projects in central Queensland illustrate this shift, combining 720 MWp of solar PV with 600 MW/2,400 MWh of lithium‑ion storage supplied by China’s CATL. Backed by a US$780 million acquisition by Canadian investor La Caisse and a consortium of 14 lenders, the developments are slated for commercial operation in 2028. Their location near the Rio Tinto aluminium complex positions them to deliver firmed, low‑carbon electricity to heavy‑industry customers.

The technical heart of the scheme is a reverse DC‑coupled hybrid architecture, where the battery connects on the grid side of the inverter rather than downstream. This configuration allows the storage system to charge both from the co‑located solar array and directly from the grid, delivering greater dispatch flexibility and higher round‑trip efficiency than traditional AC‑coupled setups. Grid‑forming inverters further enhance network stability, enabling the plants to provide ancillary services such as frequency regulation. For operators, the shared inverter infrastructure reduces balance‑of‑system costs and shortens construction timelines.

CATL’s commitment to these projects marks one of its largest battery deliveries in Australia, reinforcing the company’s expanding footprint beyond EV cells into grid‑scale storage. Coupled with recent multi‑gigawatt contracts in Europe and a 60 GWh sodium‑ion agreement, CATL is positioning itself as a diversified supplier for a market that values both energy density and cost efficiency. The combination of a long‑term Rio Tinto offtake, federal Capacity Investment Scheme underwriting, and a proven supply partner de‑risks the investment, signaling to other developers that large hybrid plants are now financially viable at scale.