EnerSys has announced that it has selected Greenville, South Carolina to develop a lithium-ion cell gigafactory to advance battery production in the US. This new factory is a long-term potential that will enable expansion and allow EnerSys to improve cell sizing in battery systems for its customers, giving independence from non-domestic cell suppliers. EnerSys has applied for a complete incentive package worth roughly $200 million from South Carolina and Greenville County, which includes both short-term and long-term incentives. The Company aims to use a portion of these earnings, combined with the Inflation Reduction Act (IRA) IRC 45X tax benefits and potential further federal support, to undertake a $500 million investment that could create 500 high-quality new jobs.
EnerSys is considering building a 500,000-square-foot state-of-the-art manufacturing complex on about 140 acres in Greenville’s Augusta Grove business park.The operation, which would be the company’s second in South Carolina, would manufacture various form factors of lithium-ion cells for commercial, industrial, and defence applications, with a production capacity of 4 GWh/y.
“We recognise Greenville as an emerging hub for high-tech companies with an attractive talent pool in a thriving community. 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. With the support of South Carolina and Greenville County this factory will help us meet our customers’ needs, including those with specific manufacturing requirements for domestic sourced batteries,” said EnerSys President and CEO David M. Shaffer.
“Congratulations to EnerSys and Greenville County on a partnership that brings new opportunities to South Carolina. The Upstate is set for significant transformation with an extraordinary US$500 million investment, accompanied by the creation of 500 new jobs. This investment will shape the region’s future, fostering sustained prosperity for South Carolina in the years ahead,” added Governor Henry McMaster.
“We are pleased that EnerSys chose South Carolina to increase its statewide presence and host such a large operation. Our pro-business climate and prepared workforce make it possible for companies to start, grow and thrive in a place they enjoy calling home,” commented Secretary of Commerce Harry M. Lightsey III.
This latest step follows EnerSys’ announcement on June 14, 2023, that it had signed a non-binding Memorandum of Understanding (MOU) with Verkor SAS, a European pioneer in battery technology, to investigate the establishment of a lithium battery gigafactory in the United States.
The company expects construction to commence in early 2025 and operations to start in late 2027.
The acquisition is subject to usual closing conditions, final Board approval, as well as regulatory and incentive approvals.
Source : EnerSys
