Eni Industrial Evolution, a subsidiary of Italian energy major Eni, has signed an agreement with FIB, a subsidiary of battery manufacturer Seri Industrial Group, to jointly develop an integrated industrial supply chain for lithium iron phosphate batteries in Italy.

The project involves ​producing lithium iron phosphate battery cells and modules, ⁠as well as assembling systems designed for ​stationary energy storage and for electric mobility in ​industrial and commercial sectors, Eni said on May 29. It will build on FIB’s existing operations at the Teverola hub in southern Italy, where the country’s first lithium iron phosphate battery cell production plant is already operational.

As part of the transaction, Eni Industrial Evolution will acquire a 30% stake in a newly established company created by FIB, which will retain the remaining 70%. The new entity will oversee the project’s commercial development, procurement, and engineering activities. Eni will pay a fixed consideration of €55 million ($64 million) for the stake, subject to potential price adjustment mechanisms.

Eni Storage System, the companies’ jointly controlled venture, will complete an assembly line for utility-scale battery energy storage systems (BESS) at the Teverola-Brindisi hub by the first half of 2027. A second giga factory with annual production capacity exceeding 8 gigawatt-hours (GW-h) of battery cells and modules is scheduled to begin operations by 2029.

The project comes as part of the development of a battery industry in Europe and builds on the complementary industrial expertise of the two companies. Its goal is to contribute to the growth of European energy storage system production and capture more than 10% of the European stationary battery market, Eni said.