Xiamen Hithium Energy Storage Technology, a Chinese battery manufacturer, plans to start production at its new US$100 million facility in Forney, Texas, later this year.

The plant will cover nearly 500,000 square feet with an annual capacity of 10 GWh and is expected to hire at least 200 local employees.

Hithium aims to boost its total production capacity to 100 GWh by 2026, up from 35.1 GWh in 2024, representing 11% of the global ESS battery market.

This expansion comes amid rising US tariffs on Chinese battery exports, with ESS batteries currently facing a 40.9% levy.

Hithium, the world’s third-largest ESS battery producer in 2024, plans to increase overseas revenue from 30% last year to 50% by 2028. Their strategy includes a new plant agreement in Europe and a joint venture in Saudi Arabia.

Founded in 2019 by former Contemporary Amperex Technology (CATL) employees, Hithium is growing to meet rising demand for renewable energy storage and increasing domestic competition.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Chinese battery makers’ global expansion represents strategic adaptation to trade barriers

Hithium’s Texas facility is part of a broader trend among Chinese energy storage manufacturers who are establishing production overseas to circumvent tariffs and maintain market access.

Leading Chinese manufacturers including CATL, BYD, and EVE Energy are similarly expanding global operations to address both overcapacity challenges in their domestic market and rising trade barriers in key export destinations1.

This “in-market” manufacturing approach has become increasingly critical as US tariffs on Chinese battery imports reached as high as 145% before the recent 90-day pause, which still leaves effective duties around 60%2.

Hithium’s strategy of generating 50% of revenue from overseas markets by 2028 reflects this adaptation to geopolitical realities, with localization being central to maintaining competitiveness in restricted markets.

2️⃣ Energy storage market exhibits remarkable growth despite trade tensions

Despite the US-China trade tensions, the global energy storage market demonstrated extraordinary resilience with shipments reaching 314.7 GWh in 2024, representing a 60% year-on-year increase3.

The utility-scale segment dominated with 283 GWh of shipments (68% year-on-year growth), illustrating the critical role of large-scale storage in supporting renewable energy integration3.