EnerVenue, a California-based company specializing in metal-hydrogen batteries, plans to open a one-million-square-foot battery gigafactory in Shelby County, Kentucky. The project’s initial phase will focus on producing 1 GWh of batteries annually, anticipating beginning production by the end of this year.

The company has committed to investing over $1 billion in subsequent phases to increase production to over 20 GWh per year across its domestic manufacturing sites. The 73-acre site facility will serve as EnerVenue’s flagship manufacturing plant for its Energy Storage Vessels.

EnerVenue claims Energy Storage Vessels offer scalability and customization options for customers seeking sustainable energy solutions. It now offers a 20-year/20,000-cycle warranty extension, ensuring the batteries maintain a capacity of 88% or more.

EnerVenue said it has secured more than 7 GWh of commitments for Energy Storage Vessels from customers, including Pine Gate Renewables, Nicon Industries’ Green Energy Renewable Solutions, and Sonnell Power Solutions.

“As customer interest in EnerVenue’s storage technology soars, we’re excited to significantly scale battery production with our new state-of-the-art gigafactory in Shelby County,” said Jorg Heinemann, CEO, EnerVenue.

The opening of EnerVenue’s gigafactory is expected to create 450 new full-time jobs.

Kentucky has offered EnerVenue tax incentives worth $10.3 million to support the project’s first phase. Additionally, Shelby County has committed to providing the company with property and wage tax rebates totaling $20 million over 25 years.

The company recently expanded its operations in Fremont, California, and secured long-term materials and equipment supply agreements with Precision Process and Precious Plate in Niagara Falls, New York.

A recent WoodMackenzie report said the growth of battery cell manufacturing capacity in the U.S. will create a positive environment for investment in the short term.

However, there are still potential supply challenges regarding battery materials, particularly with the Chinese-dominant supply of cathodes and anodes. The current manufacturing capacity can only satisfy 20% of the annual combined battery cell demand until 2031.

Last May, the U.S. Department of Energy announced $3.16 billion in funding from President Biden’s ‘Bipartisan Infrastructure Law’ to expand domestic battery manufacturing, bolster domestic supply chains, and spur job creation.