READING, PA — EnerSys (NYSE: ENS) has been chosen for negotiations to receive $199 million from the U.S. Department of Energy (DOE) to develop a lithium-ion cell production facility in Greenville, SC. This funding is part of the federal Bipartisan Infrastructure Law, aimed at bolstering U.S. battery manufacturing capabilities.
EnerSys plans a $615 million investment to build the state-of-the-art 500,000-square-foot facility, expected to create up to 500 jobs. The factory will produce lithium-ion cells for commercial, industrial, and defense uses, starting with an annual capacity of five gigawatt hours. A dedicated production line will also support the U.S. Department of Defense. EnerSys is leveraging a $200 million incentive package from South Carolina and aims to use federal and state funds, alongside tax benefits from the Inflation Reduction Act, to finance the gigafactory.
David M. Shaffer, EnerSys President & CEO, stated, “We are pleased to be selected for DOE funding to support this important domestic manufacturing investment. Our new factory will provide lithium-ion cells supporting a wide range of our products…This project will strengthen our U.S.-based supply chain and provide us the manufacturing scale and flexibility we need.”
Construction is set to begin in 2025, with commercial operations expected by 2028. EnerSys is also collaborating with Verkor SAS to enhance manufacturing expertise.
EnerSys will provide further insights into its development plans during a webcast on September 30, 2024. This initiative exemplifies EnerSys’ efforts to advance U.S. battery manufacturing and support critical defense and commercial sectors.
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