The Energy Storage Report 2024

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American Battery Factory breaks ground on Arizona LFP gigafactory

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American Battery Factory has started construction on its gigafactory in Arizona, US, which will produce lithium iron phosphate (LFP) battery cells.

The company announced the groundbreaking on its first facility last week (26 October), which sits on on 267 acres in Pima County’s Aerospace Research Campus.

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The two million square foot facility will create 1,000 jobs and require US$1.2 billion of investment, American Battery Factory (ABF) claimed. It is aiming the headquarters, R&D centre and initial factory module to be completed by 2025.

The facility will use a tension-based fabric membrane structure, which the company says saves time and money on construction, although the structure type’s suitability for a lithium-ion cell gigafactory has been questioned by some industry sources.

Energy-Storage.news interviewed the then-CEO Paul Charles about ABF’s plans last year, since when Charles has stepped down and been replaced by co-founder Zhenfang “Jim” Ge.

Speaking in March 2022, Charles said the company was targeting the military, large electric vehicle (EV) and stationary energy storage system (ESS) markets.

The company has secured strategic partnerships with technology companies including Celgard, Anovion and FNA Group, and has “…raised significant development capital to make its vision a reality”, it said.

Gigafactories and other manufacturing facilities producing clean energy technologies can benefit from generous incentives under the Inflation Reduction Act including the 45X direct payment of US$35/kWh of battery cell production.

Clean Energy Associates recently forecasted that incentives like these would lead US-made battery energy storage system (BESS) containers to become cost-competitive with those from China in the US market by 2025.

Our publisher Solar Media is hosting the10th Solar and Storage Finance USA conference, 7-8 November 2023 at the New Yorker Hotel, New York. Topics ranging from the Inflation Reduction Act to optimising asset revenues, the financing landscape in 2023 and much more will be discussed.See the official site for more details.

22 May 2024
London, UK
At the time of writing, Europe had had its most successful year in terms of Power Purchase Agreements (PPAs) with a record 7.8GW of renewable energy contracts signed. As we gather in May 2024 for the third edition of the Renewable Energy Revenues Summit, the energy landscape continues to evolve rapidly, influenced by the beating drum of climate change, volatility around power prices and the need to decarbonise power procurement as well as generation.
22 October 2024
New York, USA
Returning for its 11th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.

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