KORE Power has terminated its plans to establish a $1 billion lithium-ion battery manufacturing facility in Buckeye, Arizona. The Idaho-based company announced its decision to sell the designated site for the 2-million-square-foot KOREPlex factory, effectively halting the project.
In an emailed statement, KORE Power explained that the company has undergone a restructuring process aimed at enhancing customer benefits and ensuring long-term success. Consequently, the development of the KOREPlex facility in Buckeye will not proceed at this time.
The proposed project had secured an $850 million loan from the U.S. Department of Energy in June 2023. It was anticipated to create approximately 3,000 jobs in Arizona and was set to become the first U.S.-owned lithium-ion battery plant in the nation. The KOREPlex was designed to include multiple production lines for manufacturing batteries used in electric vehicles (EVs) and energy storage systems, specifically producing nickel manganese cobalt (NMC) and lithium-ion iron phosphate (LFP) battery cells.
In related developments, KORE Power’s CEO and founder, Lindsay Gorrill, has resigned from his position. Jay Bellows, the company’s president, will assume the role of CEO. Gorrill will continue to serve on the company’s board. Bellows is expected to guide KORE Power towards a more dynamic and prosperous future, building on the company’s previous accomplishments.
The cancellation of the Arizona factory marks a significant shift for KORE Power, which had positioned itself as a key player in the EV battery industry. The decision follows a broader restructuring strategy aimed at adapting to market conditions and optimizing the company’s operations for sustained growth.
KORE Power has not provided further details on its restructuring plans or future initiatives following the termination of the Buckeye project. The company’s focus will likely shift towards other opportunities within the battery technology and e-mobility sectors as it seeks to navigate the evolving landscape of the industry.
The termination of the KOREPlex project may have implications for the local economy in Buckeye, Arizona, which had anticipated substantial job creation and investment from the planned battery factory. The decision underscores the challenges faced by battery manufacturers in scaling operations and securing consistent funding amidst a competitive and rapidly changing market.
Source: Electrek
