Global Energy Expansion
Sigenergy Breaks Ground on Phase II Expansion for New Global Energy Storage Hub
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Sigenergy officially broke ground on June 27, 2026 on Phase II of its Nantong Intelligent Energy Center in China, just months after Phase I reached full-load production Financial Post. The company also launched a joint venture production facility with Xianghua Hardware Technology on the same day, deepening its control over the entire manufacturing process for its energy storage products.
The Nantong site will serve as Sigenergy's global manufacturing hub, supplying residential, commercial, and utility-scale energy storage systems to customers in more than 30 countries National Post. Senior government officials and key industry partners attended the ceremony at the Nantong High-tech Industrial Development Zone.
Phase II Doubles Down on AI-Driven Smart Manufacturing
Phase I of the Nantong center only reached full-load production earlier this year Montreal Gazette. Sigenergy wasted no time. The company broke ground on Phase II just weeks later. Phase II is expected to roughly double annual production capacity, pushing Sigenergy toward 10 or more gigawatt-hours of output per year across all product lines.
Founder and CEO Tony Xu, a former president at Huawei's Digital Power division, framed the expansion in sweeping terms. "This expansion is not just about scaling volume; it is about scaling intelligence," Xu said. The company integrates AI tools directly into its energy management hardware, a feature analysts say competitors are struggling to match Toronto Sun.
Joint Venture Brings Precision Parts Manufacturing In-House
The new joint venture with Xianghua Hardware Technology focuses on high-precision sheet metal, die-casting, and injection molding Ottawa Sun. These structural parts are the physical shell of Sigenergy's flagship SigenStor battery system. By making them in-house, the company cuts its reliance on outside suppliers.
The JV facility will produce parts with tolerances as tight as 0.05 millimeters — a precision level typically seen in aerospace or automotive manufacturing. That level of control matters beyond looks. In high-density energy storage, the chassis also acts as a heat sink. Tighter tolerances mean better thermal management inside the battery pack Goderich Signal Star.
Vertical Integration Could Cut Costs and Challenge Global Rivals
Owning the structural component supply chain is expected to cut Sigenergy's bill of materials by an estimated 12 to 15 percent The Observer. That cost reduction gives the company room to price aggressively against Western competitors in the US, European, and Australian markets. Phase II is also Sigenergy's first clear move into utility-scale storage, putting it in direct competition with Tesla Megapack and Fluence.
The expansion also reduces the risk of the chassis shortages that hit the broader industry hard in 2021 and 2022 Recorder. Sigenergy currently sells in more than 30 countries and aims to reach 50 or more by the end of 2025. The Nantong hub is the engine behind that global push.
Nantong Officials See an Anchor Tenant for a New Energy Cluster
Local officials at the Nantong High-tech Industrial Development Zone called Sigenergy an "anchor enterprise" for the region's clean energy industry Stratford Beacon Herald. The zone offered expedited permits and infrastructure support as part of China's broader push toward intelligent, low-carbon manufacturing under its 14th Five-Year Plan.
Regional economic reports expect the Sigenergy campus to draw 15 to 20 additional Tier-2 suppliers into the zone, creating a clustering effect similar to what major automakers produce around their assembly plants Hanna Herald. Some European trade groups, however, are watching the expansion with caution. They argue the build-out reflects deeper state subsidies that may trigger future anti-subsidy reviews under EU trade rules.
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