EnerSys to dedicate its South Carolina lithium cell plant to defense applications

EnerSys will dedicate the lithium cell factory it plans to build in Greenville, South Carolina, to developing and manufacturing cells for aerospace and defense applications and for specialized industrial applications that EnerSys says require a US-based supply chain. The company says the facility is intended to supply foreign entity of concern (FEOC) compliant lithium-ion cells for defense programs.

EnerSys intends to transition away from its technology relationship with Verkor given the facility’s defense-focused scope, and does not expect Verkor to serve as the project’s technology partner. The company says it will instead draw on an established technology partnership within its existing aerospace and defense supply base, which it did not name.

The US Department of Energy (DOE) has awarded EnerSys a revised grant of approximately $150 million for the project. EnerSys estimates the total net investment in the facility at approximately $500 million, and plans to cover the factory’s capital requirements from federal, state and local funding and operating cash flow.

The company plans to begin construction in the first half of its 2028 fiscal year and expects full production to begin about three years later. Initial production capacity is expected to be 1 GWh per year.

“This approach allows us to support customers where domestic production is essential, while generating incremental revenue opportunities beyond our internal supply needs,” said Shawn O’Connell, President and Chief Executive Officer of EnerSys.

Source: EnerSys