A new startup making US-made lithium batteries raised $75 million of a projected $150 million. The startup, Kore Power, plans to open a factory in Phoenix, Arizona, to manufacture EV batteries.
Battery manufacturing in the US is rising, as President Biden offers federal tax credits and incentives for companies working on this in America.
Kore Power, currently based in Idaho, will use the $75 million to build the KOREPlex Gigafactory. They plan to produce six gigawatt-hours of Lithium-ion battery cells every year starting in 2024. While lithium-ion batteries are not rare by any means, most of these batteries are produced overseas.
Battery Manufacturing Coming Back?
But Kore Power is one of few battery manufacturers setting up shop in the US, focusing on creating domestic jobs and supporting the American economy. The leading battery manufacturers are in China, South Korea, and Japan, but Kore Power’s success so far may signal a change in this industry, shifting production to America.
A driving force in this potential shift is the introduction of new laws and acts encouraging battery manufacturing in the US. The Bipartisan Infrastructure Law and the Inflation Reduction Act directed tens of billions of US dollars from federal grants toward battery manufacturing investments.
These new federal acts were passed to encourage US-based manufacturing and prepare for the predicted rise in lithium-ion battery demand. As more Americans switch from gas-powered vehicles to electric cars, these batteries will become more and more popular and necessary.
Currently, the battery cells produced by Kore Power use a high-density design ideal for stationary energy storage and transportation. Kore customers can take advantage of IRA tax credits, along with the US-made equipment incentive.
Investing in Domestic Businesses
The battery-manufacturing startup promises to hire American workers and use American supply chains to support domestic businesses. The goal is to grow the American economy while supporting clean energy initiatives concerning electric vehicles.
A Kore Power co-founder and CEO, Lindsay Gorrill, has voiced the company’s dedication to the American economy and remaining a US-based company supporting local and national interests. Kore plans to source materials from US-based companies, such as Novonix.
While Kore’s recent movement and funds are impressive, they’re not the only player in this industry at present. Our Next Energy is another US-based battery-cell manufacturer looking to create jobs for Americans and bolster the economy. This company is currently working to invest over $1.5 billion in a battery-manufacturing campus.
Kore’s highly successful round of funding can be attributed to Siemens Financial Services‘ efforts partnered with Quanta Services. Kore also receives support from Nidec Motor Corp., Honeywell Ventures, and Trog Hawley Capital. And this list doesn’t include some of their major supporters and investors who choose to remain anonymous.
Kore Power’s Arizona-based factory is predicted to be operational by 2024, but the company has not released specific numbers concerning the cost of building the factory and beginning production.
As the factory plans fall into place, Kore lines up potential customers for its batteries, ranging from electric vehicle companies to the stationary-storage market. If the demand for lithium-ion batteries continues to grow and flourish as expected, Kore Power will become one of the top US battery manufacturers.
Image credit: KORE Power