Key Takeaways
Richardson Electronics Ltd. (NASDAQ: RELL) is partnering with battery manufacturer Gotion Inc. to develop and deliver two US-manufactured battery energy storage systems (BESS), targeting the multi-billion dollar American market for grid and commercial power solutions. The move aims to build a more resilient domestic supply chain for critical energy infrastructure.
The collaboration brings together two Illinois-based companies to meet rising demand for energy storage. “Gotion’s advanced battery technology combined with Richardson’s deep knowledge of the U.S. power market and global engineering support capabilities positions us well to bring reliable, high-performance battery energy storage solutions to customers,” said Greg Peloquin, Executive Vice President of Richardson’s Power & Microwave Technologies and Green Energy Solutions groups.
Under the agreement, the companies will introduce a 760-kilowatt-hour BESS for commercial and industrial customers and a larger 5-megawatt-hour system for utility-scale deployments. Both platforms will be manufactured and assembled at Gotion’s facility in Manteno, Illinois. The initiative is supported by the state's Climate Resilience and Grid Advancement (CRGA) program, which offers rebates up to $250 per kWh for such projects.
This partnership allows Richardson Electronics to secure a foothold in the rapidly expanding energy storage sector, a market that is gaining focus as demand for electric vehicles fluctuates. General Motors' Ultium Cells venture, for instance, recently recalled workers to a battery plant to produce cells for energy storage systems rather than for EVs. By establishing a US-based manufacturing footprint with Gotion, Richardson is positioned to capitalize on a government and industry-wide push for energy independence and reduce reliance on foreign suppliers.
“This partnership reflects Gotion’s long-term commitment to building a localized, resilient battery supply chain in the United States,” said Jacky Yu, VP of Sales at Gotion, Inc. The collaboration will see Gotion provide its battery technology while Richardson Electronics handles commercialization, engineering, and market strategy.
This article is for informational purposes only and does not constitute investment advice.
