Leading Chinese energy storage companies are accelerating their capacity build-up in Europe, with Hithium emerging as the latest prominent example.
According to reports, Hithium is planning to establish a battery and energy storage system manufacturing facility in Navarra, northern Spain. The initial investment is approximately 400 million euro (approximately $461.4 million US), with the project expected to create 1,050 jobs across two development phases.
On March 9, Spanish Prime Minister Pedro Sánchez stated on social media that he had met with Hithium founder Wu Zuyu, noting that the company is considering a large-scale investment to manufacture energy storage systems in Navarra. The following day, an letter of intent was signed between the Regional Government of Navarra and Hithium.
01 Hithium’s Move into Spain
The project will be structured through a new joint venture between Hithium and Sodena, a public company in Navarra. The regional government has described it as “a model of public-private partnership aimed at technological re-industrialization.”
Specific details regarding the project’s location and production capacity have yet to be finalized. The facility is expected to become operational in 2027. The first phase is projected to create approximately 750 direct jobs, with an additional 300 positions to be added during the second phase.
Hithium stated that this investment aims to establish an industrial base in Europe. The Navarra government believes the project will help position the region as a European energy storage hub, while enhancing industrial competitiveness through access to renewable energy at more stable prices.
Hithium has registered a local subsidiary, Hithium Spain Innovation, headquartered in Pamplona, to oversee the project in Spain. The subsidiary’s registered address is located on Emilio Arrieta Street in the city.
From a financial perspective, the factory could receive public subsidies covering up to 20% of the investment, consistent with limits set by European regional aid rules. According to Mikel Irujo, Navarra’s Minister of Industry, the project is the result of three years of network building and institutional collaboration, also leveraging the appeal of the region’s universities, technology centers, specialized vocational training programs, and energy companies.
The Spanish market offers strong policy certainty and regional reach. On one hand, legal guarantees, combined with investment subsidies of up to 20% and access to EU recovery funds, significantly reduce implementation costs and investment risks. On the other hand, as a hub on the Iberian Peninsula, Spain enables manufacturers to leverage local green electricity to lower production carbon footprints while facilitating convenient access to markets across Southern Europe and the broader European continent. This makes Spain an optimal springboard for establishing localized manufacturing operations while mitigating trade barriers.
Furthermore, Spain’s Electricity Sector Law has explicitly established energy storage system’s legal status as a flexibility resource for the power system, fundamentally addressing commercial viability challenges. Combined with large-scale subsidy programs in neighboring European countries such as Romania, Poland, and Greece, Southern Europe is emerging as a contiguous region with robust demand for energy storage.
02 Leading Chinese Energy Storage Companies Advance European Production Capacity
Beyond Spain, Europe as a whole is actively advancing domestic battery manufacturing.
However, current local production capacity in Europe meets only 35% of battery demand, leaving a significant supply gap relative to the target outlined in the EU’s Net Zero Industry Act, which aims for locally produced lithium batteries to satisfy 80% of internal demand by 2030. This gap presents a significant opportunity for Chinese companies.
Although Europe announced plans for over 2,000 GWh of cell production capacity in 2023, realistic feasible capacity projections had been revised downward to approximately 1,190 GWh by early 2026. Notably, Asian companies are leading the implementation of up to 673 GWh of this capacity.
Hithium’s Spanish expansion exemplifies the broader trend of Chinese battery manufacturers competing in the European market. In addition to Hithium, leading Chinese companies such as CATL, Sungrow, EVE Energy, and Gotion High-Tech have also established deep roots in the European market through factory construction and joint ventures, targeting the region’s critical electric vehicle and energy storage sectors.
Source: WeChat Official Account——高工储能
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