One of the world's largest producers of energy storage devices has its sights set on Malaga

Sermatec, one of the largest producers of energy storage devices in the world, has revealed plans to build its first lithium battery factory outside China in Malaga.

These batteries are not like the ones we use in mobile phones: they are high-capacity and are intended to store energy from solar and wind farms. The plant earmarked for Malaga will be the first factory of its kind in Spain and involve an investment of 60 million euros. Its size will be similar to that planned by Hygreen for its electrolysers: 10,000 square metres. The factory is also expected to hire some 300 employees.

"We are already in negotiations to acquire land in the vicinity of Malaga city. During September, the founder of Sermatec will come to Malaga and we hope to be able to close the purchase," Malaga businessman and investor Javier Romero told SUR. He is the founder and president of Chinalink Capital, an investment fund based in China that is a shareholder in both companies. In the case of Sermatec, he owns 51%, while in Hygreen he is a minority shareholder. Romero is the head of Sermatec in Europe and will be moving to Malaga imminently as the two companies set up in the city.

"If everything goes well, our idea is to start operating by the end of 2025," Romero pointed out. This will be the fifth factory to be opened by the company and the first outside China. It will have an approximate production capacity of two thousand units per year. It is expected that half will be exported and the other half will remain in the domestic market.

Junta de Andalucía president Juanma Moreno announced the project on Saturday 31 August during his trip to Beijing where he met with leaders of Sermatec. "Sermatec, which is a company with majority European capital and also Chinese capital, and which is one of the largest producers of energy storage in the world, has made a decision that is extremely positive for us. And the decision is that its first European production plant will be installed in the city of Malaga," Moreno said. "This means many things. It means that it is the first factory of its kind that will exist in Spain, and that from here it will provide service not only to Spain, but also to Europe and America."

Moreno pointed out the impact of this project, not just in terms of creating opportunities for employment, but also because of the "capacity to create a whole industry around this factory". He also hoped it would attract "other investors and sectors also linked to energy" to Malaga and Andalucía.

The Junta said it will work to speed up as much as possible the start-up of this project, which is 100% private and has not asked for public funding, according to Romero. The Andalusian government will help speed up the bureaucratic process by declaring it a project of strategic interest and including it in the business project accelerator.

The Chinese company was attracted to Malaga for similar reasons to those of Hygreen Energy: it seeks to have production capacity in Europe and be close to one of its main markets, and also to be able to avoid tariff barriers both in Europe and in the United States. One of its shareholders being from Malaga was also influential, although Javier Romero pointed out that there are many reasons for choosing Malaga: "Andalucía is the region with the best conditions for renewable energies. And within the region, Malaga is in an optimal location, close to the port of Algeciras and with an international airport. The third reason is that the city is attractive enough to attract international talent."