US-based energy storage developer and lithium-ion battery manufacturer KORE Power announced today that it has raised an initial $75 million as part of its $150 million investment round to go towards building a high-density lithium-ion battery cell gigafactory in Arizona.

The funding will help commence the construction of its KOREPlex facility in Phoenix, which the company said will be one of the first facilities in the US to be built independently of an automotive OEM, allowing independence in the process of supplying batteries to a wide range of e-mobility and energy storage customers.

Annual production capacity at KOREPlex is forecasted to begin at 6GWh and will expand beyond 12GWh as market demand grows.

Lindsay Gorrill, CEO and Co-Founder of KORE Power, said:

“As a U.S.-based manufacturer with the ability to supply top-tier lithium-ion cells, the KOREPlex will take us to the next level. We will have American workers and an American supply chain driving the growth of clean energy and vehicle electrification. In the coming months, we expect to announce additional agreements demonstrating our commitment to building a domestic supply chain for the KOREPlex and embracing a circular lifecycle for our products.”

According to the company, the construction of the new facility comes amid rapid growth in energy storage demand, as well as a further anticipated increase in demand for domestically manufactured batteries, driven by domestic content requirement rules under the Biden administration’s recently passed Inflation Reduction Act.

Construction of the KOREPlex facility will commence this year, with initial output anticipated in late 2024.

The current funding round was led by Siemens Financial Services with participation from Quanta Services, Motor Corporation, Honeywell Ventures, Trog Hawley Capital and a leading utility scale energy storage provider.

Steffen Grosse, CEO of Equity Finance, Siemens Financial Services, said:

“Siemens Financial Services is proud to be the lead investor committed to backing KORE with both our capital and know-how. We support the industries and create the infrastructure forming the backbone of the American economy and apply that same commitment to the development of the battery industry in the U.S.”