Kentucky Gov. Andy Beshear announced Wednesday that Envision AESC, a Japanese electric vehicle battery technology company, will invest $2 billion to build a new, state-of-the-art Gigafactory in Bowling Green, Kentucky.
The 30GWH plant is expected to create 2,000 skilled jobs in the region, producing battery cells and modules to power electric vehicles (EVs) for multiple automotive manufacturers.
“We are thrilled that Envision AESC – the world’s leading EV battery technology company – has picked Kentucky,” Beshear said. “Envision AESC is making the second-largest economic development investment Kentucky has ever seen… And with this investment, Envision AESC will generate a 30GWh site, which increases Kentucky’s production to 116GWh, making the commonwealth the nation’s top producer of electric vehicle batteries.”
The plant’s first phase will supply battery technology to power 300,000 EVs annually by 2027, the company said, with the potential to expand to 40GWH. The company will produce new generation battery cells at the plant with 30 percent more density than current batteries. The new batteries will also have a reduced charging time and increased range and efficiency.
The company said the Gigafactory will be powered by 100 percent renewable energy, generated onsite and purchased locally from the Tennessee Valley Authority (TVA).
“We are pleased to partner with Kentucky and Bowling Green as part of our next phase battery strategy to power next generation EVs in the U.S.,” CEO of Envision AESC Group, Shoichi Matsumoto, said. “This major investment builds on our commitment to the U.S. market, supports growth of the electrification supply chain, and secures high-value jobs for future generations in the region. This commitment takes us one step further toward our ambition to make high-performance, longer-range batteries for a diverse range of automotive manufacturers worldwide to support the EV transition.”
The company said the plant will be approximately 3 million square feet and one of the largest economic projects in the state’s history. The strategic partnership with Kentucky will provide up to $116.8 million from state incentive programs and up to $5 million in grant-in-aid for skills training.