Chinese battery manufacturer Hithium has commenced shipments from its new 484,441-square-foot manufacturing facility in Mesquite, Texas, marking a significant milestone in domestic energy storage production.
The Xiamen-based company officially opened the facility in May 2025, following a construction timeline that began in July 2024. Initial investment doubled from the originally planned $100 million, with the plant targeting 10GWh annual production capacity for battery modules and complete systems—though cell manufacturing remains offshore.
Market Context and Policy Impact
The facility launch comes amid shifting US energy policy dynamics. While the previous Biden administration promoted domestic clean energy manufacturing, policy uncertainty under the current Trump administration has contributed to an estimated 21GWh of planned BESS cell manufacturing capacity being cancelled since early 2025, according to Clean Energy Associates.
Despite these setbacks among smaller players, major manufacturers are following through on expansion plans. Solar Media Market Research projects that capacity additions from Tesla, Canadian Solar, and LG Energy Solution will bring US-based annual BESS cell manufacturing to over 50GWh by end-2026, with similar assembly capacity expected by end-2025.
Technology and Incentives
US manufacturers can still access significant incentives, including a 10% domestic content bonus for the investment tax credit and production tax credits worth $35/kWh for cells and $10/kWh for modules. However, new restrictions on foreign entity of concern (FEOC) materials and investments from China have tightened under recent H.R.1 legislation.
Hithium continues advancing its cell technology in China, recently launching a 1175Ah large-format lithium iron phosphate cell for 4+ hour duration applications and mass-producing 587Ah cells optimized for 2-hour applications. The company currently supplies cells to NHOA, Risen Energy, Powin (recently acquired by FlexGen), and its own integrated BESS projects.
“Local manufacturing lets us meet American standards, respond quickly to demand, and work with communities and partners to drive the clean energy transition,” said James Boswell, Hithium’s VP of North America operations.
