What is the story about?
What's Happening?
International Power Supply (IPS) has inaugurated a new battery energy storage system (BESS) manufacturing facility near Sofia, Bulgaria. Recognized as a Strategic Project under the Net-Zero Industry Act by the European Commission, the facility features a vertically integrated supply chain, with nearly all critical components designed and manufactured in-house, except for lithium iron phosphate 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 applications, offering modular architecture for flexible deployment and easy maintenance. The official ribbon-cutting ceremony was 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 IPS's gigafactory in Bulgaria marks a significant step in strengthening European clean energy manufacturing and energy security. By producing battery storage systems locally, Europe can reduce its reliance on external suppliers, particularly in the context of geopolitical tensions and supply chain disruptions. The facility's integrated production model ensures tighter control over cybersecurity, data management, and system-level integration, which are crucial for grid-connected assets. This development aligns with the EU's target of producing 40% of net-zero technology demand within the region by 2030, supporting the transition to renewable energy sources and reducing carbon emissions.
What's Next?
IPS plans to expand its production capacity with the construction of the X2 factory at the Hemus High Tech Industrial Park, expected to boost annual BESS production to 5 GWh by Q2 2026. 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. 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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