Brazilian battery storage integrator YOU.ON Energia and Chinese energy storage provider HyperStrong have signed a binding agreement to jointly participate in Brazil’s 2026 battery energy storage system (BESS) capacity reserve auctions, scheduled for December.
The partnership combines HyperStrong’s BESS technology with YOU.ON’s local integration, engineering and service capabilities, including a strategy to meet local-content requirements for the auctions.
The agreement, signed in late September, establishes exclusive cooperation between the companies for Auctions A and B of the 2026 Capacity Reserve Auction (LRCAP). For Auction A, YOU.ON has already obtained accreditation from Brazil’s National Bank for Economic and Social Development (BNDES) and is progressing with its application for a CFI identification code.
The companies plan to jointly submit proposals to customers participating in the auctions. The structure combines HyperStrong equipment with local integration by YOU.ON and two local-content components intended to meet the applicable auction requirements.
HyperStrong will ship its BESS units to Brazil assembled and tested. The companies said the approach is intended to combine standardized equipment and factory testing with local integration and services, reducing deployment risks and providing greater certainty for investors.
The companies have not disclosed details of the two local-content components or the percentage of nationalization that the resulting systems will achieve.
YOU.ON said the partnership combines its local engineering, service and technical-support capabilities with HyperStrong’s storage technology and products.
The companies are targeting solutions that meet Brazil’s local-content, service and financing requirements for the 2026 capacity auctions.
YOU.ON was established through a contract with ISA Energia Brasil, formerly ISA CTEEP, to develop Brazil’s first large-scale energy storage project in Registro, São Paulo state. The 67 MWh lithium-ion battery system is designed to support electricity demand on the southern coast of São Paulo state and increase the integration of renewable generation.
YOU.ON supplied and installed the battery system, inverters, transformers, energy management software, and automation, protection and control systems. It currently also monitors the system.
HyperStrong said it had implemented more than 400 projects with cumulative installed capacity exceeding 70 GWh as of August 2026. The company has annual manufacturing capacity of more than 70 GWh across five production bases in China.
The partnership comes as local-content requirements take on a greater role in structuring projects for Brazil’s 2026 capacity reserve auction.
Under the partnership, YOU.ON will act as the Brazilian integrator while HyperStrong supplies the BESS equipment. The companies aim to offer customers large-scale battery systems while meeting the local-content requirements applicable to the auction.
YOU.ON’s BNDES accreditation is an initial step in structuring its offer for Auction A, while its application for the CFI code is still in progress.
The companies said the combination of HyperStrong’s large-scale equipment and YOU.ON’s local integration, engineering and support will form a central part of their commercial strategy for the auction.
HyperStrong said the agreement reflects its long-term commitment to Brazil and its plans to expand its participation in large-scale energy storage projects in the country.
From pv magazine Brazil
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