Italian energy group Eni has agreed a deal to expand its joint development of LFP batteries for the BESS and electric mobility sectors with energy storage firm Fib — the Seri Industrial Group.

The partners said on May 29 the deal is expected to be completed by June 3 and will involve ramping up operations at a stationary lithium batteries operation they launched in Italy last year.

The initiative aims to create a fully integrated industrial platform that includes the production of lithium iron phosphate battery cells and modules, the assembly of systems for stationary storage applications and for industrial and commercial electric mobility.

Future activities are set to include materials recycling and recovery and the production of active cathode material.

The project involves Fib’s development of the existing LFP hub at Teverola-Brindisi. Eni Storage System, a jointly controlled company of Eni Industrial Evolution and Fib, will complete the assembly line for utility-scale BESS systems at the hub by the first half of 2027.

A second facility, to produce cells and modules with an output of more than 8GWh/year, is planned by 2029.

As part of the deal, Eni Industrial Evolution is acquiring a 30% stake in a newly established company established by Fib, of which Fib will retain a 70% stake.

The new company will be dedicated to the project’s commercial development and procurement and engineering activities. The consideration for the stake includes a fixed component of €55 million ($64 million), plus any price adjustment mechanisms.

Umberto Carrara, CEO of Eni Industrial Evolution, said the project provides another piece of the puzzle required to complete the European supply chain from critical materials to the production of energy storage batteries and systems.