MILAN, Sept 24 (Reuters) - Italian energy group Eni

and Seri Industrial have initiated operations

for a project to produce stationary lithium batteries in

southern Italy, the companies said in a joint statement on

Wednesday.

The project is part of Eni's plan to reduce its exposure to

the petrochemical sector and increase its activities linked to

energy transition.

Under this strategy, Eni last year announced the closure of

Italy's last two steam crackers and pledged investments of 2

billion euros ($2.35 billion) in bio-refineries, chemical

recycling and batteries.

As Europe increases its capacity to produce energy from

renewable sources, it needs to develop battery storage systems

able to release power when solar and wind energy are not

available.

Eni Storage Systems, a joint venture with Seri Industrial,

aims to produce over 8 gigawatt hours per year of

lithium-iron-phosphate batteries at Eni's Brindisi site.

Seri Industrial and Eni said they aim to gain more than 10%

of the European market for stationary batteries.

The project is in the engineering phase and is undergoing

economic, financial and authorisation evaluations expected to

conclude in the first quarter of next year, before moving into

the execution phase.

In future, the Brindisi site will also implement battery

recycling, which will be accessible to other operators in the

sector, the companies said.

($1 = 0.8520 euros)