WEG S.A. (B3: WEGE3 / OTC: WEGZY) announces the expansion of its new battery energy storage systems (BESS) factory project, currently under construction in Itajaí, Santa Catarina. Announced in February this year, the new factory will have a total estimated investment of R$330 million and annual capacity of 4 GWh, meeting the growing demand for solutions associated with the energy transition. Operations are expected to begin in the second half of 2027.

Reinforcing the company’s strategy of supporting the growth of the energy storage market in Brazil, as the country approaches its first National Energy Storage Capacity Reserve Auction, scheduled to take place in December 2026, the updated project incorporates a higher level of automation and industrial efficiency gains that will enable an increase in production capacity.

“The energy storage market is experiencing a period of strong expansion, driven by the growth of renewable sources and the increasing need for greater flexibility and security in the electrical system. The expansion of this project demonstrates WEG’s ability to quickly adapt its investments to meet market needs and support the sustainable development of Brazil’s energy sector,” said Manfred Peter Johann, WEG’s Vice President of Automation and Systems.

BESS plays a fundamental role in modern electrical systems, particularly in the integration of renewable sources such as solar and wind power, making it possible to store energy when it is most available and make it available when needed. This flexibility contributes to electrical system stability, greater operational efficiency, and improved use of energy resources.