SolarEdge Technologies reported that it plans to start operations of its new 2 GWh lithium-ion battery factory in South Korea in the second half of 2022.
Now its Korean subsidiary Kokam has a lithium-ion cell and battery manufacturing plant with the capacity to manufacture up to 150 MWh per year.
In 2020, the company started construction of “Sella 2”, a 2 GWh lithium-ion battery factory in South Korea.
The new factory is being built to meet the growing global demand for lithium-ion batteries, specifically in the energy storage system (ESS) and electric mobility markets.
SolarEdge e-Mobility has a manufacturing and assembly facility in Umbertide, Italy for SolarEdge’s e-Mobility division.
Also, during 2021, the company started to manufacture a part of its batteries for the SolarEdge electric mobility business in Hungary.
In general, the company has designed its manufacturing processes to produce high-quality products at competitive costs.
The strategy is threefold: outsource, automate and localize.
The company currently has a contract for its solar products to be manufactured by two of the world’s leading electronics manufacturing service providers, Jabil Circuit, Inc. (Jabil) and Flex Industrial Ltd. (Flex).
By using contract manufacturers, the company can access advanced equipment, processes, skills and manufacturing capacity on a “capital light” budget.
Your contract manufacturers are responsible for financing capital expenditures incurred in connection with the manufacture of your products, except with respect to end-of-line test equipment and other specific manufacturing equipment used to assemble your products or subcomponents that are financed. and owned by the company.
SolarEdge expects to continue this financing arrangement in the future, with respect to any expansion of such existing lines.
In addition, contracting with global suppliers, such as Jabil and Flex, gives the company greater flexibility to manufacture certain products in China and Vietnam, closer to target markets in Asia and the West Coast of North America, as well as other products in Hungary, closer to target markets in Europe and the East Coast of North America, in each case potentially increasing responsiveness to customers while reducing costs and delivery times.