KORE Power Raises $150 Million to Finance Construction of Gigafactory

KORE Power, an energy storage developer, and manufacturer of lithium-ion batteries based in the United States announced that it has raised an initial $75 million as part of a $150 million investment round to fund the construction of a high-density lithium-ion battery cell gigafactory in Arizona.

The funding will be used to begin construction of the company's KOREPlex facility in Phoenix, which, according to the company, will be one of the first facilities in the United States to be built independently of an automotive OEM, allowing for autonomy in the process of supplying batteries to a wide range of e-mobility and energy storage customers.

As market demand increases, KOREPlex's annual output capacity is anticipated to increase beyond 12GWh.

Lindsay Gorrill, co-founder, and CEO of KORE Power stated:

The KOREPlex will propel us to the next level as a U.S.-based producer with the capacity to provide premium lithium-ion cells. American workforce and supply chains will drive the expansion of clean energy and vehicle electrification. In the coming months, we anticipate announcing further agreements that demonstrate our dedication to establishing a local supply chain for the KOREPlex and embracing a circular lifetime for our products."

According to the firm, the development of the new facility coincides with a significant increase in demand for energy storage, as well as a predicted increase in demand for domestically produced batteries, as a result of the Inflation Reduction Act passed by the Biden administration.

This year will begin the KOREPlex facility's construction, with production beginning in late 2024.

Siemens Financial Services led the current funding round, which also included Quanta Services, Motor Corporation, Honeywell Ventures, Trog Hawley Capital, and a leading utility-scale energy storage supplier.

Siemens FiEO of Equity Finance Steffen Grosse stated:

"Siemens Financial Services is thrilled to be the primary investor committing funds and expertise to KORE. We support the industries and build the infrastructure that is the backbone of the American economy, and we apply the same dedication to the growth of the battery business in the United States."