The company, which ranks as the globe’s third-biggest producer of energy storage systems, intends to launch its $100 million plant in Texas before the end of the year, according to an executive statement.
Xiamen Hithium Energy Storage Technology, ranked as the globe’s third-biggest producer of ESS batteries, is boosting its manufacturing capabilities abroad due to increased US-China tensions and escalating tariffs affecting Chinese goods exported internationally.
Hithium intends to commence operations at its facility in Texas during the latter part of this year and will recruit a minimum of 200 local employees, according to Sun Minghuang, who leads strategic marketing, in an exclusive interview.
“We are committed to expanding globally, and localization plays a crucial role in achieving our international objectives,” he stated. In March, Hithium submitted its application for a listing in Hong Kong to secure funding for its expansion strategies.
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The $100 million facility in Forney, Texas, spanning approximately 500,000 square feet, will boast an annual output capability of around 10 gigawatt-hours (GWh). This new site represents at least 10 percent of Hithium’s overall production capacity. According to initial documentation, the firm aimed to increase this capacity significantly, doubling it to 100 GWh by 2026 starting from the levels anticipated in 2024.
Hithium plans to produce at least half of its yearly income from international markets by 2028, up from approximately 30 percent the previous year. This strategy leverages the rising demand for energy storage as renewable energy generation expands, as stated by Sun.
At the beginning of this month, the corporation entered into an initial pact with the Spanish venture capital outfit GCRPV to establish an ESS factory in Europe. Back in October, they partnered with a company from Saudi Arabia to create a facility within that Middle Eastern nation.
Hithium is among several Chinese battery firms looking at expanding abroad as they face fierce domestic rivalry and grapple with impending U.S. duties on goods coming from China.
In 2024, the worldwide energy storage sector saw an addition of 175.4 gigawatt-hours (GWh) in installed capacity, as reported by consultancy firm InfoLink. This growth was primarily driven by China, North America, and Europe, which collectively accounted for over 90 percent of all installations during that period. Projections indicate further expansion for the current year, anticipating a total new capacity reaching up to 222 GWh—a significant rise of 26.5 percent compared to the previous year’s figures.
According to BMI Research, the United States, being the primary destination for investments in energy storage, was anticipated to add a minimum of 76 gigawatt-hours (GWh) of new capacity within the coming ten years, driven largely by governmental incentives.
“In spite of robust performance, the U.S. battery storage industry is expected to encounter increasing hurdles because of geopolitical issues, such as tariffs imposed on goods coming from China,” stated BMI analyst Harvest-Time Obadire on Tuesday.
Even though the US and China reached a 90-day tariff ceasefire earlier this month, ESS batteries imported from China were still subjected to a 40.9 percent duty, as reported by Energy-Storage.news.
According to BMI, imposing these tariffs could increase U.S. energy storage costs, impacting near-term installations, since local production is unable to keep up with the rising demand.
“In spite of the United States’ attempts to diversify supply chains, domestic manufacturing capability still falls short, and the country will keep relying significantly on imports for crucial materials such as lithium from China,” stated Obadire.
Established in Xiamen, which is located in the southeastern Chinese province of Fujian in 2019 by ex-employees from the global leader in batteries, Contemporary Amperex Technology (CATL), Hithium ranked as the globe’s third-biggest producer of energy storage system (ESS) batteries in 2024, coming after both CATL and the renowned EV manufacturer BYD.
In 2024, Hithium delivered 35.1 GWh of lithium-ion energy storage system (ESS) batteries, representing 11 percent of the worldwide market, as reported by China Insights Consultancy.
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The article initially appeared on the South China Morning Post (www.scmp.com), which is the premier source for news coverage of China and Asia.
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