EnerSys, a global leader in stored energy solutions for industrial applications, has announced its selection by the US Energy Department (DOE) to negotiate for funding amounting to $199 million. This funding aims to support the establishment of a lithium-ion (Li-ion) cell production facility in Greenville, SC, under the US government's Bipartisan Infrastructure Law (BIL), which allocates $62 billion for battery materials processing and battery manufacturing grants.
The goal of these grants is to boost US battery manufacturing capabilities and processing capacity. The negotiations between DOE and EnerSys are expected to take around 120 days to finalize. Construction of the gigafactory is scheduled to commence in 2025, with the aim to start commercial production operations by 2028.
The total investment planned by EnerSys for this project is approximately $615 million, dedicated to constructing and commissioning the plant over four years, with an additional $50 million earmarked for a production line catering to the US Defense Department's requirements. The project has also secured a comprehensive incentive package from South Carolina and Greenville County, valued at about $200 million, alongside expected tax benefits from the Inflation Reduction Act (IRA) to fulfill the capital needs of the gigafactory.
The proposed 500,000-square-foot manufacturing facility aims to create up to 500 jobs, focusing on producing various Li-ion cells for commercial, industrial and defense applications. With an initial capacity set at 5 GWh per year, the facility is designed to meet the demanding requirements of pivotal customers, including the US Defense Department.
EnerSys is working to enhance its manufacturing capabilities by forging a strategic relationship with Verkor SAS, a notable European entity in battery technology. This collaboration is expected to bring Verkor's expertise in electrode manufacturing and high-speed cell production to the US gigafactory.
David M. Shaffer, president and CEO of EnerSys, emphasized the importance of this initiative in strengthening the US-based supply chain and enhancing the company's manufacturing scale and flexibility. He highlighted the factory's role in supporting a wide array of EnerSys products, including fast-charge and storage systems, NexSys iON batteries, Alpha XRT-Li extended runtime power systems, and upcoming Li6T batteries for the Defense Department's ground vehicles. He expressed gratitude toward the state of South Carolina and Greenville County for their support and outlined the company's aspirations for the factory to drive long-term growth and deliver a solid return on investment.