Belgian company Avesta Battery and Energy Engineering (ABEE) officially unveiled its EUR 1.4 billion project for the construction in Galati (eastern Romania) of an electric Li-ion battery factory for the automotive industry and for energy storage. A second EUR 200 million stage of the project envisages a battery recycling unit.

The June 28 event at the City Hall of Ninove, Belgium, was attended by minister of economy Ştefan-Radu Oprea, former minister of economy Florin Spataru, Belgian prime minister Alexander de Croo and Ionut Pucheanu, mayor of Galati.

The project got financial support from the Romanian government, but it is largely financed by investment banks, Ziarul Financiar reported.

Romvolt, the Romanian ABEE subsidiary in Galati, will have a total production capacity of 22 GWh, equivalent to the batteries needed by 354,000 electric cars, such as the Volkswagen ID3 (62 kWh per car). It is aimed at addressing the dominance in the market exerted by China.

Romvolt will supply batteries mainly for the automotive industry but also for the energy storage market, which is seen as critical for the transition to renewable energy. The plant could reach full production capacity in 2026-2027, according to Belgian media.

In addition, the plant will also have a recycling capacity of 50,000 tons annually, with the second phase of the investment that will run from 2028 to 2030.

At the end of May, ABEE signed an agreement for the production of battery management systems in North Macedonia, sealed by Noshin Omar, CEO of ABEE and Jovan Despotovski, Director of Industrial and Technological Development Zones. The investment in North Macedonia amounts to about EUR 40 million and will have a capacity of about 300,000 units. It is expected to start production in 2024. 

iulian@romania-insider.com

(Photo source: Facebook/Ionut Pucheanu)