Dive Brief:
- Battery maker EnerSys will build a lithium-ion cell gigafactory to advance battery production in Greenville, South Carolina, according to a Feb. 14 press release.
- The company applied for an incentive package from the state and county governments worth approximately $200 million, Inflation Reduction Act IRC 45X tax benefits and potential additional federal funding, adding up to a total $500 million investment.
- The 500,000-square-foot facility will create 500 new jobs and start production by late 2027, with a ramped up production capacity of four gigawatt hours per year. The transaction is still subject to closing conditions, final board approval and regulatory and incentive approvals.
Dive Insight:
The Greenville facility, which will start construction in 2025, would be EnerSys’ second factory in South Carolina. It will focus on manufacturing various form factors of lithium-ion cells for commercial, industrial and defense applications.
“EnerSys is accelerating the global clean energy transition by significantly expanding our production of lithium-ion batteries across a broad range of end markets and applications,” EnerSys President and CEO David Shaffer said in the press release.
The lithium battery gigafactory is part of an agreement EnerSys fostered with France-based battery maker Verkor in June 2023. The non-binding memorandum of understanding would build out their battery supply chain strategy in the U.S. Verkor produces batteries for automaker Renault Group’s premium and Alpine electric models.
EnerSys is not the only battery maker expanding into South Carolina. Albemarle announced the development of a lithium-ion battery plant in the state last March.
BorgWarner is also bolstering its manufacturing capacity in the state to meet its growing electric vehicle needs. In May 2023, the auto supplier announced a $42 million upgrade and expansion at its battery factory in Seneca.
Since 2022, the U.S. has been trying to boost domestic EV battery manufacturing. In addition to the Bipartisan Infrastructure Law, the Biden administration announced the American Battery Materials Initiative, a whole-of-government effort to secure a reliable and sustainable supply of critical minerals used in EVs, including lithium and graphite.
