What is the story about?
What's Happening?
International Power Supply (IPS) has inaugurated its new battery energy storage system (BESS) manufacturing facility near Sofia, Bulgaria. Recognized by the European Commission as a Strategic Project under the Net-Zero Industry Act, the facility features a vertically integrated supply chain, with nearly all critical components designed and manufactured in-house, except for the lithium iron phosphate (LFP) cells. The X1 gigafactory offers a uniquely integrated battery manufacturing ecosystem in Europe, with an annual production capacity of 3 GWh. The EXERON X-BESS platform is designed for utility-scale and commercial and industrial applications, offering modular architecture for flexible deployment and easy maintenance. The official ribbon-cutting ceremony took place on October 10, attended by Bulgaria's Deputy Prime Minister, the Mayor of Sofia, and former President of Bulgaria, with messages from senior EU energy and climate officials.
Why It's Important?
The opening of Bulgaria's first battery storage gigafactory marks a significant step in strengthening European clean energy manufacturing and energy security. By producing battery energy storage systems locally, IPS aims to reduce reliance on imports and enhance supply chain reliability. The facility's modular and scalable design is expected to lower the total cost of ownership for customers, providing localized service and spare parts availability. This development aligns with the EU's goal of producing 40% of net-zero technology demand within the region by 2030, potentially boosting the local economy and creating jobs in Bulgaria's high-tech industrial sector.
What's Next?
IPS plans to expand its production capacity to 5 GWh by Q2 2026 with the construction of the X2 factory at the Hemus High Tech Industrial Park. Additionally, IPS is part of a consortium seeking EU Innovation Fund support for a fully automated 10 GWh facility, likely to be located in Bulgaria's former coal regions. This project, estimated at €160 million, could receive up to €90 million in EU co-funding. Parallel to its Bulgarian expansion, IPS has entered a technology licensing agreement with a Polish partner to establish a 10 GWh BESS factory in Poland by 2027.
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