WEG doubles planned output of Brazilian BESS factory to 4 GWh ahead of key auctions

Brazilian electrical equipment manufacturer WEG has doubled the planned production capacity of a battery energy storage system (BESS) factory under construction in southern Brazil, taking its target output from 2 GWh to 4 GWh per year.

The company has increased planned investment in the Itajaí, Santa Catarina, facility from BRL 280 million ($53.7 million) to BRL 330 million ($63.5 million), while maintaining its target of starting operations in the second half of 2027. WEG said additional automation and improvements to the manufacturing process will allow it to double the originally planned output.

The original project was announced in February after Brazil’s development bank BNDES approved BRL 280 million in financing through its Mais Inovação program. The financing covers the refurbishment of an existing industrial plant and construction of the new BESS manufacturing facility. WEG has not said whether the additional BRL 50 million of planned investment will also be financed by BNDES.

The facility will manufacture BESS for utility-scale and commercial and industrial applications and is expected to introduce cell-to-pack manufacturing for large-scale storage systems in Brazil. The original 2 GWh production plan was equivalent to about 400 5 MWh systems per year, putting the revised 4 GWh capacity at the equivalent of around 800 such systems.

The factory will include automated and semi-automated assembly lines, autonomous mobile robots for internal logistics, and a testing and development laboratory. Around 90 new jobs are expected to be created.

WEG’s decision to expand the factory comes shortly before Brazil’s first battery-specific capacity reserve auctions, scheduled for Dec. 2 and Dec. 4.

The Dec. 2 “National Storage” auction (Leilão de Reserva de Capacidade de Armazenamento Nacional) is reserved for BESS projects using batteries manufactured in Brazil, while a second auction two days later will also allow imported equipment. Projects in both auctions must provide at least 30 MW, offer four hours of storage, and will receive 15-year contracts beginning in August 2028.

WEG is already listed by BNDES among the approved BESS suppliers for the domestic-content auction. It is one of two Brazilian companies on the current supplier list, alongside Moura, which also includes BYD, Gotion, Trina, TBEA and You.On.

Interest in the auctions has been substantial.