NUSANED, Schmid Group JV to build battery making facility in Dammam
The manufacturing facility will be built under a build-to-suit lease with Saudi Authority for Industrial Cities and Technology Zones (MODON)
NUSANED Investment, an investment firm owned by Saudi Basic Industries Corporation (Sabic), and Germany-based SCHMID Group will together build a GW-scale manufacturing facility for vanadium redox flow batteries in Saudi Arabia’s Dammam third industrial city.
The companies have closed a joint venture (JV) after receiving all required regulatory approvals and fulfilling all closing conditions, with the newly formed JV being named Advance Energy Storage System Investment Company.
According to SCHMID, the JV will support the Kingdom’s Vision 2030 economic diversification plans. In the next couple of months, Riwaq Industrial Development Company will join the JV as an additional investor and shareholder.
The JV will produce energy storage systems and utility-scale renewables projects, telecom towers, mining sites, remote cities and off-grid locations, with the systems being used for renewables capacity grid integration, establishment of mini grids at remote locations, optimisation of diesel generator capacity, and power back-up.
Speaking about the formation of the JV, CEO of NUSANED Investment, Fuad Mosa, said: "The JV marks a milestone for Saudi Arabia in its quest to localize manufacturing for technologies in emerging industries."
Meanwhile, CEO of the Schmid Group, Christian Schmid, said: “The new JV will aim to establish a leadership position in the rapidly developing energy storage market.”
The JV’s products will be offered under the EVERFLOW brand, with production at the facility set to begin in 2021.
Additionally, the proposed manufacturing facility will be built under a build-to-suit lease agreement with Saudi Authority for Industrial Cities and Technology Zones (MODON).
A project site for the facility has been identified and construction is expected to start in H1 2020. Moreover, the facility will have an annual production capacity of 3GWh.