{"id":13593,"date":"2024-10-04T01:39:06","date_gmt":"2024-10-04T01:39:06","guid":{"rendered":"https:\/\/www.findadistributor.com\/news\/?p=13593"},"modified":"2024-09-26T14:42:16","modified_gmt":"2024-09-26T14:42:16","slug":"enersys-enters-negotiations","status":"publish","type":"post","link":"https:\/\/www.findadistributor.com\/news\/enersys-enters-negotiations\/","title":{"rendered":"EnerSys Enters Negotiations"},"content":{"rendered":"

EnerSys<\/a>, a provider of stored energy solutions for industrial applications, has been selected to enter into award negotiations for $199 million from the U.S. Department of Energy\u2019s (DOE) Office of Manufacturing and Energy Supply Chains to support the development of EnerSys<\/a>\u2019 lithium-ion cell production facility in Greenville, SC.<\/p>\n

The DOE funding is part of the federal $62 billion Bipartisan Infrastructure Law (BIL) Battery Materials Processing and Battery Manufacturing Grants, which are focused on ensuring that the U.S. has a viable battery materials processing industry with the objective of expanding domestic battery manufacturing capabilities and enhancing processing capacity.<\/p>\n

The selection is subject to final contract and funding negotiations between the DOE and EnerSys<\/a>, which could take approximately 120 days to conclude.<\/p>\n

The company plans to invest approximately $615 million to construct and commission the plant over the next four years. The company also plans to invest approximately $50 million to construct a specialized production line for the US Department of Defense.<\/p>\n

As announced in February 2024, EnerSys<\/a> had also been awarded a comprehensive incentive package through South Carolina and Greenville County valued at approximately $200 million, which includes a combination of short-term and long-term incentives.<\/p>\n

EnerSys<\/a> intends to use the federal, state, and local funding, along with a portion of the tax benefits received through the Inflation Reduction Act (IRA), to support the capital requirements of the gigafactory.<\/p>\n

EnerSys<\/a>\u2019 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.<\/p>\n

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.<\/p>\n

The factory will help support the needs of critical customers such as the U.S. Department of Defense (DOD) which has specific manufacturing requirements for domestically sourced batteries. EnerSys<\/a> is also progressing on a strategic relationship with Verkor SAS (Verkor), a European leader in battery technology, to leverage their expertise in electrode manufacturing and high-speed cell production to support the factory. EnerSys<\/a>\u2019 Board of Directors has formally approved the investment and development plan.<\/p>\n

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EnerSys is a provider of stored energy solutions for industrial applications.<\/p><\/div>\n

\u201cWe are pleased to be selected for DOE funding to support this important domestic manufacturing investment,\u201d said EnerSys<\/a> President & CEO David M. Shaffer.<\/p>\n

\u201cOur 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.<\/p>\n

\u201cThis project will strengthen our U.S.-based supply chain and provide us the manufacturing scale and flexibility we need. We are confident that this factory will generate a strong return on investment and will help drive the long-term growth of our company.<\/p>\n

\u201cWe are excited to advance this project to production as quickly as possible. We also thank the State of South Carolina and Greenville County for their continued support,\u201d Shaffer concluded.<\/p>\n