Pylontech in JV with system integrator for ESS battery gigafactory in Italy

LinkedIn
Twitter
Reddit
Facebook
Email

System integrator Energy SpA and its vertically integrated peer Pylon Technologies (Pylontech) have formed a joint venture (JV) to set up a gigafactory in Italy producing batteries for energy storage.

The Italy and China-based companies (respectively) have set up the JV entity Pylon LiFeEU S.r.l, Energy announced on the Italian stock exchange today (18 May).

Through the JV, the firms will set up a facility producing lithium iron phosphate (LFP) batteries at Energy’s existing facility in Sant’Angelo di Piove di Sacco, set to be operational by the end of 2023.

After that, the two will then build a gigafactory at the same site which will have an eventual production capacity of between 1,095MWh and 1,460MWh annually (based on producing 600-800 batteries a day totalling 3-4MWh of capacity).

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

However, Energy’s media statement indicated that, at least at first, the capacity would be going towards its own energy storage products, which it deploys across the residential, commercial and grid-scale segments.

“The transaction will position Energy as the only Italian company to manufacture the energy storage system and storage batteries in-house,” it said.

Jinpeng “Geoffrey” Song, Vice President of Pylontech’s international business, adds: “It is an important step for Pylontech to start localised production, as our partners, especially in Europe, are eager to have a more secure and stable supply chain.”

As Energy-Storage.news has written recently, the Italian grid-scale market looks set to take off in the next few years after being virtually non-existent until now. The commercial and industrial (C&I) sector is also relatively small.

However, the residential market has boomed – second-only to Germany by annual deployments – thanks to the inclusion of a energy storage as an eligible technology in a 110% tax credit for energy efficiency renovation, dubbed the ‘superbonus’.

Pylontech produces both lithium-ion battery cells and BESS units and listed on the Shanghai Stock Exchange two years ago, when it announced it would have 4GWh of BESS production capacity by 2024.

Read Next

September 17, 2025
Australia’s Capacity Investment Scheme (CIS) has awarded 4.13GW/15.37GWh of battery storage capacity in its third tender round, exceeding initial targets and attracting 135GWh of bids.
Premium
September 11, 2025
US sodium-ion battery firm Natron Energy has ceased trading, putting an end to its two domestic gigafactories. The news points to the challenges for battery chemistries hoping to compete with LFP, analysts told Energy-Storage.news.
September 10, 2025
Major BESS route-to-market (RTM) deals have been announced in Poland, by Greenvolt and Entrix, and in Italy, by Zelestra and BKW.
September 10, 2025
Tesla has announced that by the end of 2026, it expects to have around 4.5GW of grid-forming battery storage operating across Australia.
September 9, 2025
Emerging tech must prove it can outcompete the incumbent, writes Sightline Climate analyst Lukas Karapin-Springorum, outlining the state of play in LDES technology today.

Most Popular

Email Newsletter