EnerSys gets $199 million for a lithium-ion facility in South Carolina.
The U.S. Department of Energy has awarded EnerSys (NYSE:ENS), a leading supplier of industrial energy storage solutions with a $3.93 billion market valuation and $3.51 billion in yearly revenue, $199 million to help build a new lithium-ion battery manufacturing facility in Greenville, South Carolina. The company’s liquid assets surpass its short-term liabilities, indicating that it maintains solid financial health, according to InvestingPro’s research. The DOE’s Office of Manufacturing and Energy Supply Chains provided the financing, which is a major step toward strengthening the American energy supply chain.
The 500,000-square-foot Greenville factory is intended to manufacture cutting-edge lithium-ion cells for a variety of vital uses in the commercial, industrial, and defense sectors. Notably, the facility will meet the U.S. Department of Defense’s particular requirements for batteries that are obtained locally. The firm is well-positioned for its development due to its strong financial foundation, which is demonstrated by its low debt levels and excellent current ratio of 2.97.
With commercial production expected to commence in 2028, EnerSys plans to begin construction in 2025. This comes after the business announced on September 20, 2024, that it had been chosen to negotiate the DOE grant, and on September 30, 2024, it gave more information in a Technology Talk webcast.
The new facility highlights EnerSys’s dedication to sustainability and reducing its environmental impact, and it is anticipated to further the company’s goals in influencing the direction of energy storage in the future. Additionally, the investment fits in with EnerSys’s larger portfolio, which consists of a range of batteries for various industrial applications, power conversion, distribution, and storage.
Statements on the anticipated results of the investment, such as the creation of jobs, the completion of the investment, and the gigafactory’s operating schedule, were included in the news release. These statements, according to EnerSys, are predicated on present expectations and are susceptible to risks and uncertainties that may have an impact on future outcomes.
