The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

Turkish firm Kontrolmatik expects US$900 million in IRA incentives for US gigafactory

LinkedIn
Twitter
Reddit
Facebook
Email

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.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

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.

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.

Read Next

April 22, 2024
Dutch developer Giga Storage has received a permit for construction for its 600MW/2,400MWh BESS project in neighbouring Belgium and will choose the BESS technology provider after summer.
Premium
April 22, 2024
Lithium-ion battery OEM CATL’s claim that its latest BESS product has no degradation for the first five years of use has provoked much discussion across the industry, with some sceptical of its merits.
Premium
April 18, 2024
The CFO of Goldman Sachs-backed US battery storage developer-operator GridStor discussed its recent investment tax credit (ITC) transfer deal for a California BESS project, highlighting some downsides as well as positives from the new mechanism.
April 18, 2024
Clearway Energy has put two large solar and storage projects into operation in California, it announced on the same day as an industry letter asking Congress to reform siting, permitting and transmission before this year’s elections.
April 18, 2024
Rapid technology improvements and trade policy risk pose a dilemma for US battery storage procurement decision-makers, write George Touloupas and Jeff Zwijack of consultancy and market intelligence firm Clean Energy Associates (CEA).

Most Popular

Email Newsletter