By Brazil Stock Guide – WEG (B3: WEGE3; OTC: WEGZY) said it will build a new factory dedicated to battery energy storage systems (BESS) in Brazil, deepening its exposure to technologies seen as critical for power-grid stability amid the expansion of renewable energy. The new unit will be located in Itajaí, in the southern state of Santa Catarina, and is expected to be the most advanced facility in the country in this segment.
The investment will be supported by R$280 million in financing from the BNDES Mais Inovação program, approved under a public call focused on the transformation of strategic minerals for the energy transition and decarbonization, carried out in partnership with Brazil’s innovation agency Finep. The funding highlights the role of development-bank capital in fostering domestic industrial capacity linked to clean-energy infrastructure.
Construction of the plant is set to begin shortly, with completion scheduled for the second half of 2027. Once operational, the facility is expected to generate around 90 direct jobs and expand WEG’s production capacity in BESS systems to up to 2 gigawatt-hours per year, equivalent to roughly 400 systems with 5 megawatt-hours each. The unit will feature a high level of automation, including automatic and semi-automatic assembly lines, as well as the use of autonomous mobile robots for internal logistics and materials handling.
The complex will also house a dedicated laboratory for testing, development and product qualification, aimed at improving manufacturing processes, ensuring quality control and accelerating the rollout of new energy storage solutions. In addition, the infrastructure will include a power substation designed to simulate real-world operating conditions, allowing systems to be validated under scenarios similar to those faced by utility grids and large industrial users.
Battery energy storage systems have become a central component of modern power systems as intermittent renewable sources such as solar and wind continue to scale globally. By storing electricity during periods of lower demand and releasing it when needed, BESS solutions help smooth supply fluctuations, enhance grid reliability and reduce the risk of outages. With the new investment, WEG reinforces its positioning as an integrated supplier for the energy transition, targeting a fast-growing market driven by decarbonization efforts and the modernization of electricity networks.
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