Canadian Solar (CSIQ) stock is soaring 5.03% in intraday trading on Tuesday, following news of a significant battery storage project in Chile involving its subsidiary. The surge comes as investors react positively to the company's expanding presence in the global renewable energy market.

The catalyst for the stock's climb is a major contract secured by SMA Solar Technology AG for a four-hour battery storage project in Chile's Atacama Desert. The project, which will enhance the existing 220 MW Diego de Almagro Sur solar power plant, will incorporate a 228 MW battery storage system with a capacity of 918 MWh. Notably, the batteries for this significant project will be supplied by eStorage, a subsidiary of Canadian Solar Inc.

This development highlights Canadian Solar's strategic position in the growing energy storage market. The project, set to begin construction in June with commercial operations expected by December 2026, aims to store solar energy for grid stability and support energy security in Chile. The inclusion of features such as instantaneous reserve and black start capabilities further underscores the advanced nature of the technology involved. As renewable energy and energy storage continue to gain importance globally, Canadian Solar's involvement in such high-profile projects could potentially drive further growth and investor interest.