EnerSys Plans $500 Million Lithium-Ion Battery Gigafactory in South Carolina

EnerSys

READING, PA — EnerSys (NYSE: ENS), a global leader in stored energy solutions, has announced plans to open a lithium-ion battery gigafactory in Greenville, South Carolina, marking a significant move towards domestic battery production. The decision underlines the company’s long-term growth strategy and its aim to optimize battery cell sizing for customers, reducing dependence on non-domestic cell suppliers.

The Berks County, Pennsylvania-based firm is set to invest $500 million in the project, potentially creating 500 new jobs. The investment will be partly funded by a comprehensive incentive package from South Carolina and Greenville County, valued at around $200 million, along with tax benefits from the Inflation Reduction Act and potential additional federal funding.

EnerSys is considering a 500,000-square-foot state-of-the-art manufacturing facility on a site spanning approximately 140 acres in Greenville’s Augusta Grove business park. The new factory, which will be the company’s second operation in South Carolina, will manufacture various forms of lithium-ion cells for commercial, industrial, and defense applications, with an annual production capacity of four gigawatt hours.

David M. Shaffer, President & CEO of EnerSys, praised Greenville as a burgeoning hub for high-tech companies, with a skilled workforce and a thriving community. “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 domestically sourced batteries,” he said.

South Carolina Governor Henry McMaster hailed the planned factory as a transformative investment for the region. “The Upstate is set for significant transformation with an extraordinary $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,” he said.

READ:  Gaming and Leisure Properties Raises Quarterly Dividend

This development follows EnerSys’ announcement in June 2023, that it had signed a non-binding Memorandum of Understanding with Verkor SAS, a European leader in battery technology, to explore the development of a lithium battery gigafactory in the U.S.

EnerSys is aiming to begin construction in early 2025, with operations slated to go online by late 2027. The project is still subject to final board approval, regulatory clearances, incentive approvals, and customary closing conditions.

For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and Microsoft Start.