Inside Jabil's BESS Supply Chain Network Expansion

Global manufacturing solutions provider Jabil has unveiled plans to broaden its partnership with Inno, a metal parts manufacturer and subsidiary of Shanghai Xinpeng Industry Co. (XP), focusing on the production of battery energy storage system (BESS) enclosures.

The collaboration involves a joint investment in a 15,000 square metre facility spanning two buildings in Rayong, Thailand.

A groundbreaking ceremony took place on 3 November, with the facility anticipated to begin prototyping operations by late 2026.

Strategic alliance builds on decade of collaboration

Jabil's relationship with XP dates back to 2014, when the company began delivering mechanical design, sheet metal and fabrication services through a strategic alliance. The partnership has enabled support for customers operating across multiple sectors, including energy, telecommunications and networking, data centres and healthcare.

The Rayong facility, operated jointly by Jabil and Inno, will focus on manufacturing BESS metal enclosures, components that represent a significant portion of overall system costs due to raw material expenses and welding requirements. Historically, manufacturers have relied on sourcing these enclosures from China before shipping them to strategic suppliers positioned closer to end markets for final integration.

This expanded partnership could allow Jabil to deliver a comprehensive lifecycle solution for BESS customers, incorporating capabilities such as sheet metal processing, structural section fabrication, structural welding and coating, all from a strategically positioned and cost-effective location. The site's proximity to Laem Chabang, located just 25 kilometres away, positions it near Thailand's largest port and Southeast Asia's fourth largest.

"For over a decade," says Brent Tompkins, SVP, Global Business Units, Renewables and Energy Infrastructure, "our team has helped energy storage leaders design and integrate technologies like battery management systems, power electronics and high-level assemblies into their BESS solutions.

"Our customers are increasingly looking to diversify their supply chain in the face of tariffs and geopolitical uncertainty.

"We're excited to offer this critical industry a vertically integrated solution that meets their needs, from enclosure production to final integration and fulfilment, while simplifying sourcing and reducing risk."

Supporting global energy transition

According to Jeffrey Shen, CEO of XP, the company Inno operates under, collaboration could accelerate Inno's expansion within the energy storage market.

"Our collaboration with Jabil will accelerate Inno's growth in the energy storage market, bringing the potential of renewable power to more communities around the world, especially in support of the growing energy demand of AI infrastructures globally," Jeffrey explains.

"Together, we can provide customers with increased supply chain resiliency at a competitive price point."

Battery energy storage serves as the foundation for a more flexible and resilient energy system. As renewable generation continues to expand and the electrification of buildings, transportation and industry gains momentum, BESS fulfils a critical function not only in energy storage but also in grid stabilisation during periods of peak demand.

Join Jabil at Procurement & Supply Chain LIVE

Fireside: Procurement is a value driver, not a cost centre, with Frank McKay, Chief Supply Chain Officer, and Graham Scott, Chief Procurement Officer at Jabil

Join Frank McKay at Procurement & Supply Chain LIVE: The US Summit in Chicago.

Frank has spent the best part of three decades at Jabil, the global manufacturing solutions provider serving approximately 450 of the world's leading brands.

Now, as Chief Supply Chain Officer, he leads the company's supply chain organisation and services division across a truly global operation.

Frank's journey into the profession began in the 1990s when, fresh out of college, he accepted his first role as a buyer. It came at a pivotal moment in the industry's evolution as technology was just beginning to reshape the procurement landscape.

"I got the procurement bug and decided this was an area that would continue to evolve," Frank says. "It was a time when technology was just starting to become part of the ecosystem of procurement and supply chain."

Procurement & Supply Chain LIVE: The US Summit

Procurement & Supply Chain LIVE: The US Summit takes place on 21-22 April, bringing together senior procurement and supply chain leaders focused on innovation, strategy and transformation in their organisations.

Co-located with Sustainability LIVE: The US Summit, the event provides a comprehensive view of procurement and supply chain’s evolving role in driving business value and sustainability.

It will also feature the inaugural US awards, which will be presented during a black-tie gala dinner at Navy Pier, uniting the leaders driving procurement and supply chain excellence across the US and Canada.

The awards ceremony will take place following Day 1 of the US Summit.  

Early bird tickets (saving you more than £200) are available here.