Canadian Solar (CSIQ) saw its stock soar by 5.03% in intraday trading on Tuesday, marking a significant upward movement for the solar energy company. The surge comes on the heels of an announcement regarding a major battery storage project in Chile that involves the company's subsidiary.

The project in question is a substantial four-hour battery storage initiative in Chile's Atacama Desert, aimed at enhancing the existing 220 MW Diego de Almagro Sur solar power plant. SMA Solar Technology AG has secured the contract for this project, which will incorporate a 228 MW battery storage system with a capacity of 918 MWh. Notably, the batteries for this large-scale project will be supplied by eStorage, a subsidiary of Canadian Solar Inc.

This involvement in such a significant project is likely driving investor enthusiasm for Canadian Solar. The Chile project, set to begin operations by December 2026, underscores the growing demand for energy storage solutions in renewable energy projects. For Canadian Solar, this represents a major opportunity to showcase its technology and potentially secure more contracts in the burgeoning energy storage market, which could lead to increased revenues and market share in the future.