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Greenville Business Magazine

EnerSys Selects Greenville, South Carolina, to Advance its Lithium Battery Production in the United States

Feb 14, 2024 04:04PM ● By David Dykes

EnerSys (NYSE: ENS), a global leader in stored energy solutions for industrial applications, said it has selected Greenville, South Carolina, to develop a lithium-ion cell gigafactory to advance battery production in the United States.

Reading, Pennsylvania-based EnerSys said it has applied for 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. 

The company said intends to use a portion of these proceeds, along with the Inflation Reduction Act (IRA) IRC 45X tax benefits and potential additional federal funding, to make a $500 million investment with the potential to create 500 jobs.

Officials said the new factory represents a long-term opportunity that will enable growth and allow EnerSys to optimize cell sizing in battery solutions for its customers, providing independence from non-domestic cell suppliers.

EnerSys is evaluating development of a 500,000 square foot state-of the-art manufacturing facility on approximately 140 acres in the Augusta Grove business park in Greenville. 

The operation, which would be the company’s second in South Carolina, would manufacture various form factors of lithium-ion cells for commercial, industrial and defense applications, with a production capacity of four gigawatt hours (GWh) per year.

“We recognize Greenville as an emerging hub for high-tech companies with an attractive talent pool in a thriving community. EnerSys is accelerating the global clean energy transition by significantly expanding our production of lithium-ion batteries across a broad range of end markets and applications. 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 domestic sourced batteries,” said EnerSys President and CEO David M. Shaffer.

"This investment will shape the region's future, fostering sustained prosperity for South Carolina in the years ahead,” said Gov. Henry McMaster.

This latest development comes after EnerSys announced June 14, 2023, that it had entered into a non-binding Memorandum of Understanding (MOU) with Verkor SAS, a European leader in battery technology, to explore the development of a lithium battery gigafactory in the United States.

The company is targeting construction to begin in early 2025 and operations to be online in late 2027.

The transaction, among other things, is subject to customary closing conditions, final board approval, regulatory and incentive approvals.

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 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.