Chinese energy storage firm Hithium Energy Storage Technology Company has partnered with Saudi entrepreneur Nabilah AlTunisi to establish a battery energy storage systems (BESS) manufacturing facility in Saudi Arabia.
The joint venture, named Hithium Manat, will have an annual production capacity of 5 gigawatt-hours (GWh) and is set to play a crucial role in advancing both countries’ renewable energy goals.
The announcement, made during a solar and storage conference held in Riyadh, aligns with Saudi Arabia’s broader ambition to transition to a low-carbon future and support its Vision 2030 strategy.
Vision 2030 aims to diversify the kingdom’s economy away from oil dependence and position it as a global leader in renewable energy.
The Hithium-Manat facility will focus on manufacturing advanced battery storage solutions designed to operate in the challenging environmental conditions of the Middle East.
According to Hithium, the systems will feature enhanced sandstorm protection and advanced high and low-temperature designs, capable of withstanding extreme climates. The customisations are essential for the Middle Eastern market, where high temperatures and harsh conditions can significantly impact energy storage technology performance.
Nabilah AlTunisi, founder and owner of the local Saudi partner in the venture, stressed the strategic importance of this collaboration. “This strategic alliance will not only provide access to world-class energy storage technology but also generate local employment opportunities, stimulate technological innovation, and actively contribute to realising the Kingdom’s Vision 2030 objectives,” she stated.
The joint venture comes at a time when Saudi Arabia is ramping up its renewable energy ambitions. In line with this, the kingdom is making large-scale investments in both renewable energy generation and storage capabilities to ensure grid stability as it increases its share of solar and wind power.
Saudi Arabia’s National Grid, a subsidiary of the Saudi Electricity Company, has recently awarded contracts to develop a series of BESS projects across the country.
In August 2024, Riyadh-based Algihaz Holding secured $800 million in contracts for three energy storage systems to be built in Najran, Madaya, and Khamis Mushait.
Also, the National Grid has tendered contracts for five more BESS facilities, with a combined capacity of 2,500 megawatts (MW).
Each of the upcoming projects will have a capacity of around 500 MW, contributing significantly to Saudi Arabia’s growing energy storage infrastructure. The locations of the projects include major cities and load centers such as Riyadh, Qaisumah, Dawadmi, Al-Jouf, and Rabigh.
Saudi Arabia, the world’s largest oil exporter, has committed to developing 58.7 GW of renewable energy capacity by 2030.
The growing focus on energy storage is driven by the increasing penetration of renewable energy in the kingdom’s power grid. As solar and wind energy are inherently intermittent, energy storage systems are critical to maintaining grid stability and ensuring a reliable power supply.
Globally, the demand for energy storage solutions is projected to soar, with cumulative capacity expected to reach 127 GWh by 2027, up from 36.7 GWh in 2023, according to a GlobalData report.
The joint venture between Hithium and Nabilah AlTunisi positions Saudi Arabia to tap into the rapidly growing global energy storage market.
Leading Chinese companies, such as BYD and CATL, alongside South Korean firms like LG Energy Solutions and Samsung SDI, have been at the forefront of the industry. These companies provide advanced battery technology that is critical for both electric vehicles and large-scale energy storage systems.
Hithium’s entry into the Saudi market signals a broader trend of Chinese energy storage firms expanding their footprint in the Middle East, a region poised to become a major hub for renewable energy development.
It will not only support Saudi Arabia’s renewable energy goals but also contribute to economic diversification by fostering local manufacturing and creating jobs in the high-tech energy sector.
