Turkish company Kontrolmatik Technologies expects over US$900 million in incentives from the Inflation Reduction Act to 2032 for its US lithium battery gigafactory, with Powin one of its first offtakers.
The engineering and project management company announced in a stock market filing yesterday (28 November) the establishment of a US subsidiary with an initial capital of US$40 million, as the vehicle for the establishing and operation of its lithium iron phosphate (LFP) battery gigafactory.
The factory will produce battery cells and packs specifically for the utility and industrial-scale stationary energy storage sectors, with 280-305 Ah range LFP batteries.
It expects the factory to start operating in 2024, though is still waiting for the result from the regional authority application for the chosen site.
As Energy-Storage.news recently reported, the day after Biden signed the Inflation Reduction Act (IRA) into law, Kontrolmatik announced plans to increase its planned capacity by 50% to 3GWh a year.
The firm also said the new subsidiary is part of progressing a 7.5GWh framework offtake agreement with Oregon-based battery energy storage system integrator Powin, first announced in June. Kontrolmatik said that the framework agreement involves Powin buying 0.5GWh of battery cells in 2024 rising to 2GWh annually from 2026 to 2028.
“Powin is a big supporter of cell OEMs building capacity here in the US,” CEO Geoff Brown told Energy-Storage.news when asked to comment on the deal.
Kontrolmatik has also spelt out the amount of IRA incentives it expects to benefit from over 2024-2032, namely from a US$35/kWh tax credit for battery cell production and US$10/kWh for battery pack production. It expects a total of US$912.8 million by 2032.
See the firm’s schedule in the infographic below using data from its stock market release. It plans to start operations in the US factory with a greater proportion of battery cell production, which will pivot over the decade to a greater emphasis on battery back production.
In August, Kontrolmatik USA CEO Bahadir Yetki denied to Energy-Storage.news that it had delayed the opening of its 2.25GWh annual capacity Turkish LFP gigafactory, which will begin commercial production in the second quarter of next year.