WEG expands battery plant investment to BRL 330 million

WEG announced on Friday, September 25, an expansion of its battery energy storage systems (BESS) factory project under construction in Itajaí, Santa Catarina. The revised plan raises total estimated investment to BRL 330 million and doubles annual production capacity to 4 GWh. Commercial operations are scheduled to start in the second half of 2027.

The factory was originally announced in February with an initial financing package of BRL 280 million from the BNDES Mais Inovação program in partnership with Finep. That initial plan targeted 90 direct jobs and an annual capacity of 2 GWh, the equivalent of roughly 400 systems of 5 MWh each. WEG stated that the expansion adds higher automation and industrial efficiency gains.

The facility will include a dedicated testing, development, and qualification laboratory, as well as an on-site substation to simulate real-world operating conditions and validate equipment performance and safety. WEG is one of seven suppliers accredited by BNDES for Brazil's upcoming capacity reserve auction for storage, scheduled for December 2, 2026.

Manfred Peter Johann, Vice President of Automation and Systems at WEG, noted that the energy storage market is expanding rapidly alongside renewable generation, and that the project demonstrates WEG's ability to adjust investments to market demand.