By Ed Ballard
An unremarkable-looking plan for a new factory in Poland cuts to the heart of big questions that are preoccupying governments. Which industries are critical? When do competitively priced imports become an intolerable dependency? Does it matter if the future of energy has a Made in China stamp?
The proposed plant is slated to cost roughly $275 million, create 400 jobs and produce humdrum yet important equipment: grid-battery systems and devices called inverters that connect solar farms to the power network.
Behind the project is China's Sungrow, which is looking to head off political threats to an important export market. As of 2024, it was Europe's largest grid-battery supplier and its second-largest inverter supplier, according to Wood Mackenzie.
The plan was announced last week as Europe debates a new strategy to avert industrial decline. It could include requirements that companies use Europe-made equipment if they want government contracts or subsidies.
That would be a watershed for the European Union, which even in increasingly protectionist times has steered clear of local-content rules. The goal would be to support existing industries and build know-how in areas where Europe isn't competitive, for instance by motivating more electric-vehicle battery partnerships between European and East Asian companies.
The Journal this week explored the trade-offs involved in courting investment, examining the rise of a Chinese automotive glass plant in Ohio.
It isn't clear what products would be covered by Made in Europe rules or how stringent they would be. One risk, said Neil Makaroff of think tank Strategic Perspectives, is that new factories bring little in the form of technological know-how or jobs.
Sungrow said the Poland plant would handle manufacturing steps including the production of some electronic components and the assembly and testing of finished products. The bar for local content should be higher than that, said a spokesman for Austrian inverter maker Fronius, one of the Western manufacturers competing with low-cost imports from China.
The spokesman also argued that simply requiring Chinese companies to set up shop in Europe doesn't mitigate potential security risks.
Some lawmakers in Europe and the U.S. say inverters could be exploited to destabilize the grid. Those fears gained some credence in December when Poland's government repelled a cyberattack on energy infrastructure, blaming Russian sabotage.
This represents another risk for Sungrow. The EU has pushed to restrict the use of Chinese telecoms gear and is looking to expand its cybersecurity rules to cover more critical infrastructure. It has identified inverters as a potential area of concern.
Sungrow said it prioritizes cybersecurity and would comply with any new rules, adding that risks should be assessed based on technical standards. That won't satisfy China hawks. Erika Langerová, a cybersecurity researcher at the Czech Technical University, simply opposes the use of inverters made by Chinese companies, even if that slows the deployment of green energy.
Sungrow's growth in Europe depends in part on her worries remaining a minority concern and renewables deployment targets proving durable. Meanwhile, promising to invest some money can't hurt.
Tell me what you think: Send your feedback and suggestions to ed.ballard@wsj.com. And if somebody forwarded you this email, you can subscribe here.
This is an edition of the WSJ Climate & Energy newsletter, a weekly must-read of news, analysis and exclusive data focused on the intersection of business, money and climate, with coverage from across Dow Jones. If you're not subscribed, sign up here.
Get an inside look at how companies and individuals are tackling sustainability, free in your inbox three times a week. Sign up for WSJ Pro Sustainable Business.
This Week's Top Stories
Trump's biggest climate-policy rollback. The 2009 "endangerment finding" says six greenhouse gases pose a threat to public health and welfare. It provides the legal basis for the Environmental Protection Agency to set climate regulations under the Clean Air Act. Trump administration officials are about to repeal it. Environmental groups plan to challenge a rollback in the courts, and it could be years before litigation is resolved.
Jeep maker takes a big EV write-down. Stellantis said it would book charges of about $26 billion, the largest yet reported by an automaker related to electric-vehicle investments. Consumers have been put off by high prices and range anxiety while President Trump's deregulation also changed the calculus.have
"Undisputed Champion of Beautiful Clean Coal." That's what it says on the trophy pictured above, which was presented to Trump on behalf of an industry group at the White House on Wednesday. Trump announced more funding for coal plants and signed an executive order instructing the military to use coal-fired power.
-- Savior or 'Supervillain'? A Trump Ally's Gamble to Unlock Venezuela's Oil
(WSJ)
-- The Wild Disparity Between the Valuations of BYD and Tesla $(IBD)$
-- Europe Needs to Learn Its Lesson: Stop Relying on Imported Energy (WSJ)
-- Climate Funds Are Out of Favor. Not for These Investors. (Barron's)
-- The U.S. Is Awash in Natural Gas, but American Factories Still Can't Get
Enough (WSJ)
The Data Point
McCloskey expects the U.S. to burn 553 million tons of coal this year. The month before Trump returned to office, the forecast for 2026 was 482 million tons. Consumption of the most carbon-intensive fossil fuel is holding up because of increasing power demand and pro-coal policies such as orders to keep power plants open.
The Climate & Your Money
Barron's pulled Vail Resorts from its list of stock picks after a historically warm stretch in the Colorado Rockies led to dismal snow levels and a slumping share price. "Blame it on climate change or just bad luck if you like. Either way, another winter with low snowfall totals next year would almost certainly force the stock to reprice lower, " Dan Victor writes.
🛡 Energy Stocks Are Winning 2026. Why They Could Keep Going. ( Barron's)
About Us
WSJ Climate & Energy offers news, analysis and exclusive data focused on the intersection of business, money and climate. You'll find highlights from across Dow Jones, including The Wall Street Journal, Barron's, MarketWatch and Investor's Business Daily, plus data and analysis from OPIS, Chemical Market Analytics and McCloskey.
Today's email was written by Ed Ballard in London. Contact him at ed.ballard@wsj.com. Contact the team at climate@wsj.com.
(END) Dow Jones Newswires
February 12, 2026 09:25 ET (14:25 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.