American Battery Factory Inc. has secured offtake agreements for more than 4.5 gigawatt-hours of battery cells from its planned Tucson, Arizona, gigafactory, supporting the company’s target of 5.5 gigawatt-hours of initial annual output. These agreements with A-rated energy storage solution providers cover at least the first five years of production and are expected to enable the finalization of plant financing within three to four months. Funding will support construction and the installation of custom automation equipment for a fully automated 314-ampere-hour battery cell production line designed to enhance efficiency and cost competitiveness.
Co-advisors Cantor Fitzgerald and Newmark are assisting with capital formation and real estate strategy, respectively. Drawing on experience from ABF-Asia, American Battery Factory anticipates beginning production in late 2027, with full capacity reached in 2028. The first phase of the facility will house the company’s headquarters and a 0.5-gigawatt-hour research and development center, alongside the primary 5-gigawatt-hour manufacturing lines, each stretching nearly 500 yards.
The lithium iron phosphate cells produced at the site will offer a chemistry known for safety and environmental sustainability, with a projected lifespan of up to 10,000 cycles, or more than 20 years. Jim Ge, CEO of American Battery Factory, noted that the offtake agreements advance the company’s goal of onshoring a domestic supply chain and accelerating growth in the U.S. clean energy economy.
Pima County Economic Development Director Heath Vescovi-Chiordi said the agreements represent a critical step toward making the Tucson facility operational and expressed enthusiasm for the upcoming construction phase.
American Battery Factory has also formed partnerships with several technology and materials suppliers, including:
- Wuxi-LEAD
- Honeywell
- Advanced Energy Materials
- First Phosphate
- Anovion
- Celgard
- FNA Group
- Microporous
- Lion Energy
- Aqua Metals
These collaborations will provide digital platforms, lithium sourcing, anode and separator materials, battery pack integration, and recycling solutions.
John Kem, President of American Battery Factory, added that the secured offtake agreements will accelerate the full build-out of the Pima County facility and support the company’s strategic objective of becoming the premier U.S.-based manufacturer of LFP prismatic cells, contributing to a historic shift in the nation’s energy infrastructure.
Source: Business Wire
