Navarra is a consolidated world leader in renewable energy, especially a leader in wind energy: back in 1994, it built its first park and since then it has not only dressed some of its most iconic mountains with wind turbines, but has also created a powerful business ecosystem around them that has earned it the nickname of being the Silicon Valley of wind turbines.
The starting point. This industrial and technological tradition has laid the necessary foundations to be a pioneer in the next step of the energy transition. After almost three years of contacts and visits, Navarra has closed the agreement to install a Hithium Energy Storage battery gigafactory. As summarized the president of the Foral Community: “We know that China has decided to go out and invest in Europe and these are opportunities that Navarra cannot miss.”
The project. The Government of Navarra together with Hithium Energy Storage will form a joint venture through the public company SODENA for the construction of a plant that will manufacture lithium iron phosphate (LiFePO4) cells and assemble complete stationary storage system batteries (BESS batteries).
The agreement signed in China contemplates an investment of 450 million euros, according to Qui Tangdirector of Strategy at Hithium, and the creation of around 700 jobs, with the possibility of a second phase that would add about 300 more, as collects News from Navarra. Still with some to be closed, the start of production has been set for 2027 and the location with the most votes for its installation is the old BSH plant in Esquíroz/Ezkirotz, just five kilometers south of the Navarrese capital.
Why is it important. The great pending issue for the European energy transition involves stationary batteries: without the capacity to store electricity generated by the sun and wind, the electrical system cannot absorb more renewables without compromising the stability of the network. Europe has a lot of installed generation and little of its own storage industry and that gap is precisely what Hithium comes to solve. On the other hand, manufacturing within the EU allows it to avoid tariffs and other bureaucracy that Brussels applies to Chinese energy products.
For Navarra the impact has several levels. Beyond the obvious economic investment and employment, it represents a logical evolution: from becoming a benchmark in clean energy generation to becoming the manufacturing hub for the storage systems that will allow it to be managed. But Hithium will also be the second battery factory in Navarra: Hyundai Mobis already has its own in Noainalthough oriented towards electric vehicles. With this arrival, Navarra consolidates an industrial ecosystem around energy storage at the level of few European regions.
Context. The movement comes at a time of reconfiguration of European industrial sovereignty against third parties through the Net-Zero Industry Act (NZIA). That Hithium chooses Navarra makes it possible for its production to carry the “Made in EU” label, thus complying with the sustainability and regulatory standards of the old continent.
Navarra already had installed power and leading engineering companies, but it lacked the capacity to store energy. In the midst of the global energy crisis, demand for large-scale storage solutions has skyrocketed and Hithium was looking for a strategic port to supply the European market. The Foral Community has forged this agreement slowly, as the counselor explains of Industry, Ecological and Business Digital Transition of the Government of Navarra Mikel Irujo, after three years of negotiations and seven visits. In fact, Navarra has carried out a strategic project that was initially aimed at Euskadi, as ElDiario.es points out.
Who is Hithium?. It may not be as well-known as CATL, BYD or Huawei, but Hithium Energy Storage Technology is a giant in its segment and is also a real teenager. Founded in 2019 in Xiamen (Fujian Province) by Wu Zuyu, engineer specialized in batteries and ex-CATLthe world’s largest manufacturer in the sector. Of course, unlike CATL, whose main business is batteries for electric vehicles, Hithium focuses exclusively in stationary storage for the electrical grid. Less media coverage than electric cars but essential for the energy transition.
In record time she has gone from being unknown to becoming one of the leading manufacturers global stationary storage battery companies with a presence in more than 20 countries and more than 1,200 engineering professionals in a workforce of 8,000 people. The one in Navarra will be Hithium’s second factory outside of China (the other is in Dallas, Texas) and will be the company’s reference base for all of Europe.
Yes, but. Although the agreement has been signed, Chivite itself has warned that there are still administrative steps pending and the location is still unclear. On the other hand, the joint venture with the participation of SODENA implies that the risk does not fall solely on Hithium: if the project is delayed or does not reach the objectives, the Navarrese citizens assume part of the consequences. The commitment to local employment is explicit and the Provincial government has promised to monitor itbut there are already precedents that invite caution.
Leaving aside this specific case, there is a technological question that remains unanswered: Europe has foreign dependence on rare earths or semiconductors and this risk also affects batteries. It is true that a Chinese gigafactory on European soil generates local employment and produces within the EU, but the technology, intellectual property and strategic decisions continue to be made in China.
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