What is the story about?
What's Happening?
International Power Supply (IPS) has opened Factory X1, Bulgaria's first gigafactory for battery energy storage systems (BESS), with a capacity of 3 GWh per year. Recognized by the European Commission as a strategic project for a net-zero industry, the facility is located in the Kremikovtsi industrial district of Sofia. The factory will manufacture X-BESS modular systems, with plans to increase capacity to 5 GW by mid-next year. IPS's supply chain is over 70% based in Europe, excluding battery cells sourced from China. The company aims to leverage European technology and know-how to produce sovereign BESS systems.
Why It's Important?
The establishment of Bulgaria's first battery gigafactory is a pivotal development in the European energy sector, contributing to the EU's strategic goals for clean energy production and energy security. By localizing production, IPS reduces dependency on foreign imports and enhances supply chain resilience. The project supports the EU's ambition to meet 40% of net-zero technology demand domestically by 2030, potentially revitalizing Bulgaria's industrial regions and creating new economic opportunities. The facility's focus on modular and scalable systems is expected to offer competitive advantages in terms of cost and efficiency.
What's Next?
IPS is planning a 10 GWh manufacturing project worth EUR 160 million, seeking EU financial support. Potential locations include areas near coal plants in Bulgaria's Maritsa East complex and Bobov Dol. Additionally, IPS has partnered with MM Energy to build a 10 GWh facility in Poland using its technology. These expansions are expected to further bolster IPS's position in the European energy storage market and contribute to regional economic development.
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