EnerSys to set up new lithium-ion battery plant in South Carolina

On 14 February, US-based industrial energy storage systems manufacturer and technology provider EnerSys announced its plans to build a new lithium-ion battery plant in Greenville County, South Carolina.

The plant, which has a blueprinted annual capacity of 4GWh, is EnerSys' second facility in South Carolina. The investment is initially expected to be in the region of $500 million, with construction beginning in early 2025 and operations commencing in late 2027. The plant will be independent of battery suppliers outside the US, and will therefore provide lithium-ion batteries of various sizes to the defence industry and military, in addition to products for the commercial and industrial sectors.

EnerSys estimates that the commissioning of the plant will create around 500 new local jobs. In terms of subsidies, the company has applied for incentive packages totalling $200 million through the state of South Carolina and Greenville County levels of government. The incentive package includes initial financial support and long-term performance-based incentives. In addition, the plant is expected to receive tax credits from the Inflation Reduction Act and federal grant funding.

SMM observes that the US is gradually restricting the use of products from countries that are currently the largest suppliers to the global lithium battery market, starting with the most sensitive defence industry. Meanwhile the demand for industrial, commercial and defence-related energy storage in North America is expected to be good in the coming years. SMM therefore believes that the plant will have a stable target customer base. The investment has a high probability of successful implementation and operation.