Kore Power received the loan to produce 6 GWh of grid storage and electric vehicle battery capacity.

Kore Power announced it secured a conditional loan commitment from the U.S. Department of Energy Loans Program Office, receiving $850 million to build a battery cell manufacturing facility for electric vehicles and grid-scale storage.

The funds were provided by the Advanced Technology Vehicles Manufacturing loan program. Established in 2007, the program has loaned over $8 billion for projects that have supported the production of more than 4 million advanced technology vehicles.

The facility, called the KOREPlex, is a 1.3 million square foot site with multiple production lines for both advanced battery cells for transport and larger grid-scale batteries, using both nickel manganese cobalt and lithium ferro-phosphate batteries. The site is located in the greater Phoenix, Arizona area.

“The administration is taking advantage of the resources we provided through the Inflation Reduction Act to not just boost jobs in Arizona, but also to strengthen our national security by reducing our dependence on foreign sources of battery components for everything from electric vehicles to energy storage,” said Arizona Senator Mark Kelly.

When the initial lines are fully operational, the factory will have an annual production capacity of 6 GWh of battery cells, and may be expanded to 12 GWh to meet rising demand. The facility is expected to begin delivering product by the end of 2024 or early 2025.

The construction of the KOREPlex, which began civil works late last year, is expected to create 700 jobs. The facility itself is expected to create 1,250 direct jobs when operating at capacity. The company is also is working with local colleges and universities in Arizona to establish training initiatives and programs for the factory’s workforce.

“We are focused on building a facility where American workers will build the battery cells that power our energy and mobility future,” said Lindsay Gorrill, Founder and chief executive officer, Kore Power. “Domestic manufacturing will unlock the benefits of clean energy investments for U.S. workers across the supply chain.”

In November 2022, Kore Power announced a $75 million equity investment for the Arizona facility, led by Siemens Financial Services and utility contractor Quanta Services.

In late 2022 BloombergNEF forecast a 30% compound annual growth rate in the energy storage market. Similarly, electrification in the mobility sector, which includes electric vehicles and charging infrastructure, is experiencing rapid growth with EV sales up 60% year over year.

Also in late 2022, American Battery Factory, a Utah-based manufacturer of lithium-ion phosphate (LFP) battery cells, announced it will build its first gigafactory in Tucson, Arizona, with 2 million square feet of production space.

The company’s landmark site will involve a $1.2 billion capital investment, start with 300 first phase employees and scale up to 1,000 cumulative jobs over time, bringing $3.1 billion in economic impact to the state.

Elsewhere, in South Carolina, battery technology provider AESC announced a 1.5 million square foot facility to produce EV batteries for BMW. Slated for commercial operations in 2026, the facility is expected to provide over 1,170 jobs and produce 30 GWh of capacity. 

The American Clean Power Association said in the first eight months following the passage of IRA, 46 clean energy manufacturing facilities were announced, bringing an expected 18,000 or more U.S. jobs, with more announcements rolling in week after week.