Bulgaria launches its first gigafactory for energy storage systems
Bulgarian energy technology producer International Power Supply (IPS) officially launches the country’s first gigafactory for energy storage systems.
The facility, located in the Hemus High-Tech Industrial Park in Sofia, has an initial annual production capacity of 3 GWh, with plans to increase to 5 GWh by the end of 2026 and up to 15 GWh by the end of 2027. Named IPS Factory X1, the plant has been recognized by the European Commission as a strategic project under the Net-Zero Industry Act.
Strategic project of European significance
During the opening ceremony, attended by Sofia Mayor Vasil Terziev and Bulgarian Deputy Prime Minister Tomislav Donchev, IPS CEO Alexander Rangelov highlighted the investment’s importance for both Bulgaria and Europe:
“By starting serial production of EXERON X-BESS systems here in Bulgaria, we are building modern energy storage technology in Europe. The strategic project status granted by the European Commission confirms the growing demand for energy storage across the continent.”
IPS plans to invest a total of €180 million in developing three BESS production plants in Bulgaria. The first (IPS Factory X1) is now operational, the second is under construction, and the third — a fully automated facility with 10 GWh annual capacity — is awaiting EU financing approval. Its total value is estimated at €160 million, with €90 million expected from EU funds.
Gigascale ambitions: from 3 to 15 GWh in two years
Currently, the Sofia plant has a semi-automated 3 GWh production line, but additional phases over the next two years will raise total capacity to 15 GWh annually. This positions Bulgaria, previously seen as an importer of advanced energy technologies, as a key link in the European battery supply chain.
IPS estimates that reaching full production could cover up to 15% of Europe’s demand for energy storage systems. Even the first 3 GWh line could generate annual revenues of around €350 million.
Green production and European industrial cooperation
The new IPS factory is designed according to green industry principles and will be partially powered by a 3 MW rooftop solar installation.
At the same time, IPS is expanding internationally. Its Polish partner, MM Energy, has decided to build a 10 GWh factory in Poland using IPS-licensed technology, illustrating growing regional cooperation within the European battery value chain.
The European Commission’s NZIA framework foresees that by 2030, at least 40% of the EU’s clean technology demand will be met by local production. IPS’s investment in Sofia aligns perfectly with these goals, strengthening the resilience of the European market and reducing dependence on Asian suppliers.