Echandia Joins the Growing Green-Propulsion Industry in Washington State

In a sign of the favorable investment climate in the U.S. shipbuilding supply chain, Swedish battery maker Echandia has decided to set up a manufacturing plant in Washington State, just 50 miles from Norwegian-owned competitor Corvus.

"The US market holds immense strategic importance for us, and this represents a pivotal step in our rapid expansion," said Fredrik Hellström, CEO of Echandia Marine AB, in an announcement Thursday. "We look forward to being part of the thriving Washington business community for many years to come."

Echandia predicts that the U.S. maritime electrification market will grow in the years ahead, and Washington is a promising location. The Washington State Ferry system - the largest in the United States - has a legislative mandate to transition its 21-vessel fleet to battery-hybrid operation by 2040, at an estimated cost of $4 billion. The invitation to bid for the first five hybrid vessels was released in May.

"Washington is leading the world’s high-tech revolution, putting people to work on solutions that will change the world for the better," said Washington Gov. Jay Inslee in an accompanying statement. "Echandia will continue that right here in Marysville, putting brilliant Washingtonians to work and accelerating the decarbonization of maritime transport."

Echandia is the second maritime-battery firm to start production in Washington. In 2022, Norwegian-owned battery system builder Corvus Energy announced the construction of a new factory at the Port of Bellingham, Washington, north of Marysville on the I-5 corridor. The new manufacturing plant officially opened in January 2023, and it has an annual output of 200 MWh of battery storage system capacity. Corvus has existing battery factories in Norway and British Columbia, but it wanted to expand production to meet growing U.S. demand. 

Echandia and Corvus are part of a growing trend of foreign direct investment in the U.S. shipbuilding industrial base, all by firms from allied nations. In addition to longstanding foreign investors like Fincantieri, newcomers from South Korea and Canada are looking to enter the market. In April, Hanwha Ocean attempted to purchase Austal USA by bidding for parent firm Austal Ltd. The bid was turned down, but Hanwha successfully acquired Jones Act shipbuilder Philly Shipyard in June. In addition, Canada's Davie Shipbuilding recently committed to investing in a U.S. yard for icebreaker production, pending identification of the right partner.