BESS company AESI announces plans for a new factory in Malaysia and forms new partnerships

US grid-scale battery energy storage systems (BESS) provider American Energy Storage Innovations Inc (AESI) on Wednesday announced plans for a new manufacturing facility in Malaysia along with new partnerships, inducing an expanded cells supply deal with a Chinese firm and an over 1.5-GW BESS delivery pact in the UK.

The new undertakings were announced during the RE+ clean energy conference in Las Vegas.

The planned manufacturing site in Malaysia is expected to be opened by the fourth quarter of 2025, the company said in a press statement without providing further details. AESI noted that the decision factors in the additional tariffs on material sourced from China and the lack of a committed supply chain for a 100% US-manufactured BESS.

“This option guarantees AESI customers will enjoy the best value at the best cost,” said CEO Bud Collins.

AESI further announced in the statement that it has entered into an expanded master supply agreement (MSA) to source about 20 GWh of battery cells from China’s EVE Energy Co Ltd (SHE:300014) over three years. The partnership will allow AESI to meet the growing demand for its flagship product TeraStor.

During the event in Las Vegas, the company also reached an agreement on three letters of intent (LoIs) with ESB Scotland Ltd for projects utilising AESI’s TeraStor. The pacts represent a combined capacity of more than 1.5 GW and will be delivered to three sites in the UK.

The precise projects include:

AESI develops lithium-ion BESS under the TeraStor brand. It also offers the StorView distributed energy management suite of software and control hardware for sizing, configuring, simulating, deploying and managing TeraStor.

The entity is a spin-off from American Battery Solutions Inc. It became an independent company in September 2023.