SolarEdge Technologies, Inc. announced it will cease all activities of its Energy Storage division as part of a strategic reorientation to focus on its core solar operations. This decision will result in a workforce reduction of approximately 500 employees, primarily located in South Korea.
The closure is expected to generate quarterly operating expense savings of approximately $7.5 million, with the full run rate anticipated to be achieved by the second half of 2025. The company plans to sell the assets related to the storage division, including its manufacturing facilities for battery cells and packs.
This strategic move underscores SolarEdge's commitment to financial stability through cost reduction and a return to cash flow positivity and profitability. The company clarified that this decision does not impact the sale of batteries for its solar business in residential and commercial and industrial markets.
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