Chinese battery manufacturer Hithium ships first units from Texas BESS assembly plant

AI generated summary

Hithium, a Chinese battery manufacturer, has commenced shipments of its first battery energy storage systems (BESS) from its newly established plant in Mesquite, Texas. The facility, which spans 484,441 square feet, was officially opened in May 2024, following an initial investment announcement of $100 million that later doubled. Hithium aims for an annual production capacity of 10GWh, although the specific allocation between battery modules and complete systems has not been disclosed. The factory does not include cell production lines, but local manufacturing allows Hithium to meet American standards and respond to market demands effectively.

Despite a reduction in planned BESS cell manufacturing capacity in the U.S. due to policy uncertainties, larger companies like Tesla and LG Energy Solution are expected to increase domestic production significantly by the end of 2026. Current incentives under the U.S. administration, such as the investment tax credit and production tax credit, support domestic manufacturing. Hithium has not yet announced plans to shift its cell production to the U.S., but it continues to innovate with its battery technologies in China, including the recent launch of a large-format lithium iron phosphate cell.