Enersys and Verkor partner to explore development of lithium-ion battery factory in the United States.
EnerSys (NYSE: ENS), the global leader in stored energy solutions for industrial applications, announced that it has entered into a non-binding Memorandum of Understanding with Verkor SAS, a European leader in battery technology, to explore the development of a lithium battery gigafactory in the United States.
Under the Memorandum of Understanding, the companies are developing plans, determining the optimal new factory location, and evaluating various funding and operating structures for this manufacturing facility. This new factory represents a long-term opportunity that will enable growth for both companies and allow EnerSys to optimize cell sizing in battery solutions for its customers, providing independence from non-domestic cell suppliers.
Verkor, based in France, is committed to providing high performance, low-carbon, locally based battery cells and modules. Verkor has developed a proven process for designing and manufacturing electrodes, battery cells and modules. Verkor is rapidly increasing its production capacity in France, with a 150 MWh per year pilot line in Grenoble (France) and a first gigafactory of 16 GWh per year starting production in 2025, in Dunkirk (France), serving major customers including the car manufacturer Renault Group.
David M. Shaffer, EnerSys President & CEO said:
Establishing a U.S. lithium-ion cell supply is a critical element of our supply chain strategy.
“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. As we look at the best ways to meet the existing and rapidly growing demand for lithium-ion batteries, highly efficient local manufacturing is essential.”
“This U.S. factory will help us meet our customers’ needs, including those with specific manufacturing requirements for domestic sourced batteries. With Verkor’s expertise in lithium-ion electrode chemistry and high-performance products, they are the ideal manufacturing partner for us.”
“We are particularly excited about the scale and flexibility this factory will provide us, with both large production capacity and the ability to create custom cells. Partnering with an industrial expert such as Verkor de-risks and accelerates our common ability to execute successfully on this project.”
Benoit Lemaignan, Co-Founder and CEO of Verkor, said:
While our current effort is focused on the delivery of our Verkor Innovation Centre in Grenoble (France) and our first gigafactory in Dunkirk (France), it is important for us to explore our future growth in other geographies and other markets.
“Expanding to North America together with a well-established innovation leader like EnerSys is a great way for us to fulfill our primary mission, ie. to further accelerate the energy transition with low carbon high performance batteries and expand Verkor’s product line-up into the industrial mobility applications.”
Shaffer added, “We expect our current U.S. battery production to continue to yield credits through the Inflation Reduction Act that will help us fund this important manufacturing facility. EnerSys’ eligibility for the IRA incentives reinforces the critical nature of the products and services we provide. In turn, we expect our future production of lithium batteries in the U.S. will enable further benefit from the incentives of the IRA.”
About EnerSys
EnerSys is the global leader in stored energy solutions for industrial applications, 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.
Energy Systems, which combine enclosures, power conversion, power distribution and energy storage, 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.
EnerSys also provides aftermarket and customer support services to its customers in over 100 countries through its sales and manufacturing locations around the world. With the NorthStar acquisition, EnerSys has solidified its position as the market leader for premium Thin Plate Pure Lead batteries which are sold across all three lines of business. More information regarding EnerSys can be found at www.enersys.com.
About Verkor
Founded in July 2020, Verkor is a French industrial company based in Grenoble (France). Supported by the EIT InnoEnergy, IDEC Group, Schneider Electric, Capgemini, Renault Group, EQT Ventures, Arkema, Tokai COBEX, the FMET managed by Demeter, Sibanye-Stillwater, Plastic Omnium and Bpifrance. The company is accelerating the production of low-carbon batteries in France and Europe to meet the growing demand for electric vehicles, electric mobility in general and stationary storage in Europe.
Verkor is developing an attractive business model in terms of agility, sustainability, and governance, thereby attracting the best talent. A strong and agile team continues to grow to meet new challenges. The Verkor-led project is unifying, bringing together the best partners to locate the entire value chain in Europe, ensuring optimal use of skills and resources.
Thanks to these strengths, Verkor will open its fully digital 4.0 pilot line in 2023. A model of excellence, competitiveness and resource utilisation, this innovation will be integrated into the gigafactory planned for 2025. More information www.verkor.com
Sustainability
Sustainability at EnerSys is about more than just the benefits and impacts of our products. Our commitment to sustainability encompasses many important environmental, social and governance issues. Sustainability is a fundamental part of how we manage our own operations. Minimizing our environmental footprint is a priority. Sustainability is our commitment to our employees, our customers and the communities we serve. Our products facilitate positive environmental, social and economic impacts around the world. To learn more visit: https://www.enersys.com/en/about-us/sustainability/.
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EnerSys and Verkor Partner to Explore Development of Lithium-ion Battery Factory in the United States, READING, Pa., June 14, 2023
