Market RadarBESS & Batterijparken
Maxxen Energy on BESS Production, Hithium Partnership, and Vendor Financing
Maxxen Energy, a Kontek Energy subsidiary, operates a new utility-scale BESS factory and has a three-tiered partnership with cell supplier Hithium. This includes a 10 GWh supply agreement, IP exchange, and potential OEM production for Eastern Europe. Maxxen offers vendor financing for projects and maintains a significant inventory of battery cells to ensure prompt delivery.
Maxxen Energy, a subsidiary of the Turkish renewable energy specialist Kontek Energy, has established a new factory for utility-scale Battery Energy Storage Systems (BESS). Ruben Valiente, Maxxen's managing director, has shared insights into the company's operations, including its partnership with cell supplier Hithium, vendor financing, and logistical considerations.
The relationship with Hithium is structured on three levels. Firstly, a master supply agreement is in place for the delivery of 10 GWh of battery cells over a five to six-year period. Maxxen sources these cells from China and completes the final production at its own facility. Secondly, the collaboration involves an exchange of intellectual property, with Maxxen manufacturing hardware developed by Hithium, and Hithium being able to utilize Maxxen's energy management system. The third level encompasses OEM assignments, potentially allowing Hithium to produce batteries under its own brand at Maxxen's factory, particularly for the Bulgarian, Balkan, and Eastern European markets. Valiente emphasized that this is a deep commercial relationship, not an equity partnership.
Maxxen's decision to partner with Hithium followed a thorough evaluation of 10 to 15 other suppliers. Key criteria included cultural fit, Hithium's growth stage, and its exclusive focus on BESS, which aligned well with Maxxen's own specialization. This decision is considered successful, partly due to the recognized quality of Hithium's battery cells, which contributes to Maxxen's credibility in the market.
Maxxen also offers vendor financing, an arrangement where they directly extend credit to buyers of their battery products. This is particularly beneficial for small and mid-size projects that might face challenges in securing traditional project financing. There is significant interest, with letters of intent for approximately 4 GWh of projects. Maxxen has already signed three agreements with activation fees, strategically timing battery delivery just before a project's commercial operation to optimize financing costs.
From a logistical perspective, Maxxen maintains an inventory of 200 to 250 MWh of battery cells and raw materials at its warehouse and R&D center. This proactive approach is crucial for ensuring timely delivery, given the long lead times from China and potential disruptions in the supply chain.
For Power Conversion Systems (PCS), Maxxen collaborates with multiple suppliers, including Nidec, maintaining flexibility rather than exclusivity. This adaptable approach enables them to meet diverse customer preferences, offering both Chinese and European solutions, as well as string and central inverter options. Maxxen can also integrate with a customer's preferred PCS supplier for specific grid-forming requirements.
This article is based on an interview with Ruben Valiente of Maxxen Energy, published by ESS News.
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