EnerSys Selected for $199 Million Award Negotiation to Develop State-of-the-Art Lithium-Ion Cell Gigafactory
EnerSys (NYSE: ENS) has been selected to negotiate a $199 million award from the U.S. Department of Energy to support the development of a lithium-ion cell production facility in Greenville, SC. The company plans to invest approximately $615 million to construct and commission the plant over the next four years, with an additional $50 million for a specialized production line for the US Department of Defense.
The 500,000 square foot state-of-the-art manufacturing facility has the potential to create up to 500 new jobs and will have an initial production capacity of 5 gigawatt hours (GWh) per year. EnerSys intends to use federal, state, and local funding, along with tax benefits from the Inflation Reduction Act, to support the capital requirements of the gigafactory.
Construction is expected to begin in 2025, with commercial production operations starting in 2028. EnerSys will host a "Technology Talk" webcast on September 30, 2024, to provide more details about its gigafactory development plans and lithium-ion technology roadmap.
EnerSys (NYSE: ENS) è stata selezionata per negoziare un finanziamento di 199 milioni di dollari dal Dipartimento dell'Energia degli Stati Uniti per sostenere lo sviluppo di uno a Greenville, SC. L'azienda prevede di investire circa 615 milioni di dollari per costruire e avviare l'impianto nei prossimi quattro anni, con ulteriori 50 milioni di dollari per una linea di produzione specializzata per il Dipartimento della Difesa degli Stati Uniti.
Il moderno stabilimento di produzione, che si estende su 500.000 piedi quadrati, ha il potenziale di creare fino a 500 nuovi posti di lavoro e avrà una capacità di produzione iniziale di 5 gigawattora (GWh) all'anno. EnerSys intende utilizzare fondi federali, statali e locali, insieme a vantaggi fiscali derivanti dall'Inflation Reduction Act, per sostenere i requisiti di capitale della gigafactory.
Si prevede che la costruzione inizi nel 2025, con le operazioni di produzione commerciale che partiranno nel 2028. EnerSys ospiterà un webcast
- Selected for $199 million DOE award negotiation for lithium-ion cell production facility
- Plans to invest $615 million in plant construction and commissioning
- Additional $50 million investment for specialized US Department of Defense production line
- Received $200 million incentive package from South Carolina and Greenville County
- Potential to create up to 500 new high-quality jobs
- Initial production capacity of 5 gigawatt hours (GWh) per year
- Strategic relationship with Verkor SAS for expertise in electrode manufacturing and high-speed cell production
- Final contract and funding negotiations with DOE could take approximately 120 days
- Commercial production operations not expected to begin until 2028
Insights
EnerSys' $199 million award negotiation with the DOE is a significant development, potentially boosting the company's financial position and growth prospects. The total investment of
EnerSys' planned gigafactory represents a significant technological leap for the company and the U.S. battery industry. The focus on various lithium-ion cell form factors for commercial, industrial and defense applications showcases versatility in production capabilities. The collaboration with Verkor for electrode manufacturing and high-speed cell production expertise is important for competitive edge. The 500,000 square foot facility with 5 GWh capacity puts EnerSys on par with major battery manufacturers. Key innovations include fast charge and storage systems, NexSys® iON batteries for electric forklifts and Alpha® XRT-Li extended runtime power systems for communications networks. The mention of future Li6T batteries for DOD vehicles hints at ongoing R&D in high-energy density cells. This technological diversification across multiple sectors (commercial, industrial, defense) mitigates risk and opens various revenue streams, potentially establishing EnerSys as a leader in the U.S. battery technology landscape.
The EnerSys gigafactory project aligns perfectly with the growing demand for domestically sourced batteries in the U.S., driven by factors like supply chain security and the push for clean energy. The $62 billion Bipartisan Infrastructure Law underscores the government's commitment to developing a robust domestic battery industry. EnerSys is strategically positioning itself to capitalize on this trend, particularly in the defense sector where domestic sourcing is critical. The company's multi-sector approach, targeting commercial, industrial and defense markets, diversifies its customer base and reduces market risks. The projected creation of 500 high-quality jobs could also boost local economic sentiment. However, the 4-year construction timeline and 2028 production start date mean EnerSys may face competition from other entrants in this rapidly evolving market. The company's success will depend on its ability to stay technologically competitive and manage potential supply chain challenges in the interim.
New Factory to Support Growing Demand for Domestically Sourced Batteries in
The DOE funding is part of the federal
The Company plans to invest approximately
EnerSys’ plan includes developing a 500,000 square foot state-of-the-art manufacturing facility with the potential to create up to 500 high-quality new jobs. The operation will manufacture various form factors of lithium-ion cells for commercial, industrial and defense applications, with an initial production capacity of five gigawatt hours (GWh) per year. The factory will help support the needs of critical customers such as the
“We are pleased to be selected for DOE funding to support this important domestic manufacturing investment,” said EnerSys President & CEO David M. Shaffer. “Our new factory will provide lithium-ion cells supporting a wide range of our products across all of our business segments, including fast charge and storage systems, NexSys® iON batteries to power electric forklifts, Alpha® XRT-Li extended runtime power systems for communications networks, and future incremental high-energy Li6T batteries for DOD ground vehicles. This project will strengthen our
“We are excited to advance this project to production as quickly as possible. We also thank the
The Company intends to begin construction in calendar year 2025 with commercial production operations expected to begin in calendar year 2028.
EnerSys will host a “Technology Talk” webcast on Monday, September 30, 2024, at 10:30am Eastern Time to provide more details about its gigafactory development plans and lithium-ion technology roadmap. A live video webcast and archived replay will be available at https://enersys-tech-talk-lithium-cell-factory-update-2024.open-exchange.net/.
The webcast and archived replay for this event will also be available on the Events and Presentations page of the Investor Relations section of the EnerSys website at https://investor.enersys.com/events-presentations.
About EnerSys
EnerSys is the global leader in stored energy solutions for industrial applications and designs, manufactures, and distributes energy systems solutions and motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. The company goes to market through four lines of business: Energy Systems, Motive Power, Specialty and New Ventures. Energy Systems, which combine power conversion, power distribution, energy storage, and enclosures, are used in the telecommunication, broadband and utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions. Motive power batteries and chargers are utilized in electric forklift trucks and other industrial electric powered vehicles. Specialty batteries are used in aerospace and defense applications, large over-the-road trucks, premium automotive, medical and security systems applications. New Ventures provides energy storage and management systems for various applications including demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. EnerSys also provides aftermarket and customer support services to its customers in over 100 countries through its sales and manufacturing locations around the world. To learn more about EnerSys please visit https://www.enersys.com/en/.
Sustainability
Sustainability at EnerSys is about more than just the benefits and impacts of our products. Our commitment to sustainability encompasses many important environmental, social and governance issues. Sustainability is a fundamental part of how we manage our own operations. Minimizing our environmental footprint is a priority. Sustainability is our commitment to our employees, our customers and the communities we serve. Our products facilitate positive environmental, social and economic impacts around the world. To learn more visit: www.enersys.com/en/about-us/sustainability.
About DOE’s Office of Manufacturing and Energy Supply Chains
MESC plays a critical and unique role in catalyzing investments in America’s energy future to support the re-shoring, skilling, and scaling of
Caution Concerning Forward-Looking Statements
This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are not historical facts, including statements identified by words such as “believe,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “will,” and similar expressions. All statements addressing operating performance, events or developments that EnerSys expects or anticipates will occur in the future, including statements relating to the level of investment, the number of jobs created, the likelihood of obtaining or satisfying the remaining conditions to completing the investment and gigafactory, the timing of construction and operations of the gigafactory, the amount and timing of grants, and the benefits from developing and operating such gigafactory, are forward-looking statements. The forward-looking statements are based on management’s current views and assumptions regarding future events and operating performance and are inherently subject to risks and uncertainties. The statements in this press release are made as of the date of this press release. EnerSys does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release. The foregoing factors, among others, could cause actual results to differ materially from those described in these forward-looking statements. For a list of other factors which could affect EnerSys’ results, including earnings estimates, see EnerSys’ filings with the Securities and Exchange Commission, including “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations,” and “Forward-Looking Statements,” set forth in EnerSys’ Annual Report on Form 10-K for the fiscal year ended March 31, 2024. No undue reliance should be placed on any forward-looking statements.
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Lisa Hartman
Vice President, Investor Relations and Corporate Communications
EnerSys
610-236-4040
E-mail: investorrelations@enersys.com
Karen A. Shaw
Director, Corporate Communications
EnerSys
E-mail: investorrelations@enersys.com
Source: EnerSys
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