US battery developer Kore Power plans to partner withto set up a battery cell factory with an annual capacity of 12 GWh in the US state of . The ‘KOREPlex’ factory in in the Phoenix metropolitan area will produce for electric vehicles and stationary applications.
According to a company statement, construction should be finished in late 2024 or early 2025. The cooperation with Siemens is both financial and operational: Siemens Financial Services is the main investor in the first private financing tranche of 75 million dollars and Siemens Smart Infrastructure will be responsible for the electrical infrastructure and energy management at the factory.
The plant will be one of the first gigafactories for battery cells in the US to be built independently of an automaker. This independence should allow it to supply batteries to a wide range of customers. Initially, the battery developer anticipates an annual production capacity of 6 GWh and later plans to expand production “to 12 GWh and beyond.” The US company did not provide any details on the cells themselves.
“Kore Power is the first US-based, American-owned, and fully integrated provider of cells and batteries,” says Lindsay Gorrill, founder and CEO of Kore Power. “Together with Siemens’ support and solutions, KORE is uniquely positioned to serve the American market’s demand for batteries, which is expected to nearly triple over the next couple of years.”
“As the drive to decarbonize society has accelerated, we’re seeing new production demands come to the surface,” says Ruth Gratzke, president of Siemens Smart Infrastructure. “We at Siemens believe smart manufacturing starts with a smart factory. This is the time to not only set the foundation for critical supply chains but also to build American factories that are safe, reliable, flexible and connected.”
Kore Power’s announcement indicates that both sides are eager to take advantage of the current favourable investment conditions in the US “Industrial policies within the Bipartisan Infrastructure Law and Inflation Reduction Act has underscored the importance of growing battery manufacturing here in America. Companies such as KORE Power are uniquely positioned to leverage private and public investments and incentives to move forward critical production at speed and scale,” the statement reads.
While Siemens is one of the main capital providers, there are others: Nidec Motor Corporation, Honeywell Ventures, Trog Hawley Capital and “a leading energy storage provider” are also participating in the initial 75 million dollar tranche of private financing mentioned at the beginning. However, the amounts invested are not disclosed. Siemens is only highlighted as the “main investor” in this tranche.
Meanwhile, the special status of Siemens in Kore’s plans is also underpinned by personnel: Jason Thompson, Vice President Private and Growth Equity at Siemens Financial Services, recently joined Kore Power’s Board of Directors.