How to structure a US BESS manufacturing deal with Chinese partners amidst FEOC, with NeoVolta

energy-storage.news Jun 3, 2026

How to structure a US BESS manufacturing deal with Chinese partners amidst FEOC, with NeoVolta

Curated by Shubham · TechCapsules · Jun 3, 2026

AI-summarised brief · reviewed before publication

NeoVolta has partnered with Chinese firms Potis Edge and Longi to establish a US-based battery energy storage system (BESS) manufacturing facility. The joint venture, announced in January, will have an initial production capacity of 4GWh, with potential to expand to 8GWh. To comply with Foreign Entity of Concern (FEOC) restrictions, NeoVolta holds an 80% stake in the JV, while Potis Edge holds 20% and Longi has a 2% stake in NeoVolta Inc. The partnership brings together NeoVolta's domestic expertise and Potis Edge's experience in battery management, with the goal of shipping products from the facility by mid-2026, allowing developers to capture the investment tax credit.

💡 Why It Matters

· The deal showcases a viable structure for US-China partnerships in the clean energy sector amidst FEOC restrictions, leveraging strategic ownership splits to maintain compliance.
· NeoVolta's ability to acquire ownership of Potis Edge's intellectual property also highlights a key strategy for navigating technology transfer requirements.

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