EnerSys approves $500m US lithium-cell factory

(SpaceEnergy) EnerSys has approved plans for a roughly $500 million US lithium-cell manufacturing plant initially targeting about 1 GWh of annual capacity for aerospace, defence and specialised industrial applications.

The Greenville, South Carolina, facility will focus on developing and manufacturing lithium cells where a secure US supply chain is considered important.

EnerSys said its board has formally approved the investment and development plan. The US Department of Energy (DOE) has awarded the project a revised grant of approximately $150 million, subject to final documentation and customary conditions. State and local incentives are valued at approximately $200 million.

Initial production capacity is expected to be approximately 1 gigawatt-hour (GWh). Construction is currently expected to begin in the first half of EnerSys's 2028 financial year, subject to approvals and conditions, with full production targeted roughly three years after construction starts.

The revised strategy also means EnerSys intends to end its technology relationship with Verkor for the project. Instead, it expects to draw on an established technology partnership within its existing aerospace and defence supply base.

EnerSys has not identified specific spacecraft programmes or customers for cells from the planned factory.