Electrovaya to build lithium-ion gigafactory in New York
Electrovaya’s first U.S. facility adds to its existing two Canadian facilities and will produce its proprietary lithium-ion cells and batteries.
Electrovaya will set up operations at a 137,000 square foot plant on a 52-acre campus near Jamestown, NY. The company is developing the Gigafactory due to rising demand for its lithium-ion batteries, used in e-forklifts, e-trucks, e-robots, e-buses and more, a press release reads.
The Gigafactory will be located in a former electronics manufacturing facility and is expected to create approximately 250 new jobs, with expected production of more than one GWh of battery and energy storage systems over the next five years.
“Electrovaya is proud to build our first U.S. gigafactory in New York State to manufacture our high-performance lithium-ion battery products with 100% renewable energy. We are very pleased to have strong support from the State for this venture and expect to continue to find additional non-dilutive funding to support capital needs, said Dr. Raj Das Gupta, CEO of Electrovaya, in the press release.
“The Gigafactory will achieve three key objectives for the Company: Increase our manufacturing capacity to meet growing demand, improve our supply chain security and overall gross margins through added vertical integration, and develop additional market opportunities given the significant U.S.-based manufacturing capacity,” continued Dr. Das Gupta.
Empire State Development (ESD) is assisting the project by providing up to $4 million of tax credits through the performance-based Excelsior Jobs Program, and USD 2.5 million of funding through the Regional Council Capital Fund Program.
Electrovaya will also be eligible for other New York State funds, as well as U.S. federal funding from various agencies and programs. In July, the New York Power Authority Board of Trustees approved an allocation of more than 1.5 megawatts of hydropower under the Power Authority’s Industrial Economic Development program to meet the increased electric load resulting from the Gigafactory.
The final capital cost of the facility is estimated at approximately USD 75 million, and it is expected to open in phases starting late 2023.