SMA Solar Technology AG (SMA) has officially inaugurated its new Gigawatt Factory in Niestetal near Kassel, Germany, marking a major expansion of its manufacturing capabilities for utility-scale energy infrastructure.
The facility is designed to manufacture technologies supporting photovoltaic (PV), battery storage, hybrid, hydrogen, and data center applications. Based on current calculations, the factory has space to support an annual production capacity of more than 60 GW when fully utilized.
SMA said the new facility is intended to address growing demand for energy infrastructure as electrification expands across industrial, mobility, digital infrastructure, and other sectors. The company highlighted the increasing need for technologies that can integrate renewable generation, stabilize electricity grids, and support reliable and affordable energy supply.
“Reliable energy infrastructure has become a prerequisite for economic growth, industrial competitiveness and digital transformation,” said Dr. Kaveh Rouhi, CFO of SMA Solar Technology AG. “With the Gigawatt Factory, we are investing in the industrial capabilities needed to support the energy systems of the future.”
The inauguration is being held under the theme “Transforming industrial value creation into a reliable energy infrastructure.” The event brings together representatives from industry, politics, and the security sector to discuss resilient supply chains, technological sovereignty, industrial capabilities, and secure energy systems.
Participants in the high-level panel discussion include Dr. Herbert Diess, Chairman of the Supervisory Board of Infineon Technologies AG; Lieutenant General (Ret.) Ben Hodges, former Commanding General of U.S. Army Europe; SolarPower Europe CEO Walburga Hemetsberger; Nikolaus Valerius, CEO of RWE Generation SE; and Florian Bechtold, Executive Vice President Large Scale & Project Solutions at SMA.
Over the past two years, SMA has focused its manufacturing strategy on utility-scale energy infrastructure while optimizing its product and value-creation mix. The production layout of the Gigawatt Factory has also been adjusted to provide greater scalability and production capacity.
“The Gigawatt Factory is more than a new manufacturing facility. It is SMA’s answer to the growing global demand for reliable energy infrastructure,” said Florian Bechtold. “Our customers are planning larger and more complex energy projects than ever before. The Gigawatt Factory gives us the scale, flexibility and manufacturing capabilities needed to support that growth.”
The Gigawatt Factory covers a site area of approximately 46,000 square meters, including 20,500 square meters of floor space. SMA said the total investment volume is approximately €80 million, comprising around €50 million in lease payments and approximately €30 million in one-time investments for production-specific infrastructure and equipment.
The facility will manufacture the latest generation of central inverters, battery storage solutions, and energy management devices for utility-scale applications. SMA said the factory combines digitalized production processes, scalable manufacturing structures, resilient supply chains, and system integration expertise.
The new facility forms a key part of SMA’s long-term growth strategy in the utility-scale energy market and its commitment to expanding manufacturing capabilities in Europe.
