Sunlight, a leading battery manufacturer and part of the Olympia Group, has announced the cancellation of its ambitious €1.2 billion investment in Western Macedonia. The project aimed to construct Europe’s first Gigafactory to produce lithium-ion batteries for renewable energy storage and industrial applications, including intralogistics.
The decision comes after months of strategic evaluation. Olympia Group CEO Andreas Athanasopoulos revealed that the company would not proceed with the project due to significant challenges, including China’s dominance in the battery market and insufficient long-term support from the European Union.
Sunlight had initially secured €245 million in green financing from the European Innovation Fund, marking the largest allocation ever approved for a Greek company. However, the company has informed the fund it will not utilize the grant, citing the project’s infeasibility under current market and geopolitical conditions.
Athanasopoulos highlighted China’s overwhelming competitive edge, emphasizing its investment of €1 billion annually in research and development and its workforce of 20,000 engineers. He also noted that several Western battery projects have been canceled in recent years due to financing and market risks, with European companies struggling to match China’s scale.
Despite the cancellation, Sunlight plans to focus on alternative strategies. The company will continue sourcing lithium cells from China and other suppliers while exploring partnerships with both Chinese and European firms. Olympia Group remains committed to doubling Sunlight’s business by 2030, with a focus on innovative products and expanding into new markets like shipping and light commercial vehicles.
The canceled Gigafactory represents a significant missed opportunity for Western Macedonia, where the project was expected to create jobs and boost green energy innovation.
Leadership changes have followed the decision, with Nikos Mantzoufas, who led the financing efforts for the Gigafactory, stepping down from his role. His efforts had secured the groundbreaking €245 million grant, which will now remain unused.
Sunlight’s withdrawal highlights the urgent need for more robust EU support for green energy projects and greater coordination to compete with global players in the battery industry.
