Eni Expands Energy Storage Ambitions Through Partnership With FIB

Eni Industrial Revolution, a venture of Eni S.p.A. E, signed an agreement with FIB, a subsidiary of Seri Industrial Group, to jointly develop a fully integrated supply chain focused on the battery sector, particularly lithium iron phosphate batteries. The two companies plan to develop an integrated industrial platform that will cover several stages of the battery supply chain. This includes producing battery cells and modules, assembling systems to enable stationary storage applications, as well as solutions for industrial and commercial electric mobility. Additionally, over the longer term, the partners intend to pursue other activities, including recycling and recovery of valuable materials and the development of active cathode materials.

For the development of this project, FIB will carry out the industrial activities at the Teverola hub in Caserta, Italy. In fact, the first lithium iron phosphate cell production plant has already begun operations at the Teverola hub. Further, Eni Industrial Revolution and FIB have established a joint venture, namely Eni Storage System S.p.A., that will work on the expansion of production capabilities. The joint venture company plans to finish the assembly line dedicated to large-scale battery energy storage systems by the first six months of 2027. By 2029, the partnership plans to complete a second gigafactory for cells and modules production with an output capacity of more than 8 gigawatt hours (GWh) per year.

Per the terms of the agreement, Eni will acquire a 30% stake in the newly established entity created by FIB, for fixed consideration of €55 million, subject to price adjustments. FIB will retain a 70% stake in the same. The new company will focus on the commercial development, engineering and procurement work related to the project. This project aims to develop a battery industry and contribute to the expansion of energy storage system production in Europe by leveraging the industrial expertise of Eni Industrial Revolution and FIB. Eni also highlighted that the project aims to take more than 10% of the stationary battery market across Europe.

Eni Industrial Revolution mentioned that the agreement with SERI Industrial marks a significant step toward Eni's industrial transformation plan. The partnership will solidify Eni's efforts to establish an integrated battery value chain from sourcing critical raw materials to energy storage production, by using advanced technologies and industrial collaborations. This project should also help Eni advance its energy transition goals.

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E currently carries a Zacks Rank #3 (Hold).

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