According to a report on reindustrialisation strategies in Europe and the US by Capgemini, 54% of global automotive, battery, and energy organizations say the United States is the top location for gigafactories when compared to other regions, like continental Europe, the United Kingdom, China, and other emerging economies.

The Inflation Reduction Act (IRA) passed in 2022 by President Biden has accelerated the growth and investment into transportation electrification by providing incentives for companies looking for locations for their gigafactories. The Advanced Manufacturing Production Tax Credit (AMPTC) and Advanced Energy Project Investment Tax Credit (AEPITC) have reduced the cost of manufacturing high-performance batteries by 30% on average. Consumer tax credits provided to manufacturers vary based on the battery capacity of the vehicle and gradually phase out as manufacturers reach a predetermined sales volume, with up to $7,500 in tax credit for EVs with a battery capacity of at least 16 kWh. Many US states offer rebates and tax deductions to make the transition to electric vehicles more attractive, like direct cash rebates upon purchasing an EV, waiving of sales tax or registration fees for EVs, allowing EVs to use high-occupancy vehicle (HOV) lanes, even with a single occupant, and discounts on monthly electricity bills. Additionally, North America is rich in the mineral resources needed for battery manufacturing, making it an attractive location as global mineral demand increases. 

Organizations are opting for collaborative approaches when it comes to establishing gigafactories. Of the global organizations in automotive, battery manufacturing, and energy industries which are currently building or planning to build one or more gigafactories, 93% are establishing all or most projects through joint ventures or partnerships with other organizations. One such example is Samsung SDI and General Motors’ recent agreement to partner on a gigafactory construction in Indiana.

Upcoming gigafactories:

Kore Power – Buckeye, Arizona

Kore Power’s Arizona facility is slated to open in late 2024 or early 2025.

Gotion – Manteno, Illinois

Chinese company Gotion along with the state of Illinois announced in September that a $2 billion gigafactory would be constructed in Manteno, Illinois. According to the company, the facility will be up and running in 2024.

LG Energy Solution – Queen Creek, Arizona

LG will be building two facilities at this location. One opening in 2025 and the other in 2026. One will build batteries for EVs while the other will produce batteries for energy storage solutions. The plant was originally slated to open in 2024. Additional investment and a revised plan to increase production pushed that start date back a year.

Electrovaya – Jamestown, New York

Located south of Buffalo, New York, the Electrovaya battery facility is expected to start battery system assembly at the beginning of 2024. Meanwhile. cell assembly won’t commence until the second quarter of 2025.

AESC – Bowling Green, Kentucky

One of the largest economic investments in Kentucky’s history according to Governor Andy Beshear, the AESC facility is expected to create 2,000 jobs. Production of batteries is expected to begin in early 2025. The company says that by 2027, the battery production from the gigafactory will power 300,000 EVs a year.

SK Innovation / Ford – Stanton (Brownsville), Tennessee

The huge facility known as BlueOval City is currently under construction and slated to begin production in 2025. Once completed the site will build Ford’s next-generation electric truck in addition to being a battery manufacturing facility.

SK Innovation / Hyundai – Ellabell (Pembroke), Georgia

Another joint venture with SK Innovation, the Hyundai battery facility will begin operations in 2025.

Statevolt – Imperial Valley (El Centro), California

Statevolt’s gigafactory will be placed near the source of lithium that’s going to be extracted from the ground next to the Salton Sea in Southeast California. The Salton Sea is expected to have enough lithium to meet the United State’s demand for the mineral. The facility itself should start production in 2025 according to Statevolt.

Toyota – Liberty, North Carolina

The automaker’s battery facility in North Carolina will continue to build batteries for hybrid and EVs when it goes live in 2025. The automaker recently announced an additional $8 billion investment in the facility.

LG Energy Solutions / Hyundai – Ellabell (Pembroke), Georgia

The Metaplant America will be both an EV factory for Hyundai, Kia, and Genesis vehicles and a battery facility. Production is slated to begin by the end of 2025 with an annual production target of 30 GWh at the battery facility. 

LG Energy Solutions / Honda – Jeffersonville (Jamestown), Ohio

Honda is moving quickly to secure its battery facility. The facility will be completed at the end of 2024 and mass production will start by the end of 2025.

Panasonic – De Soto, Kansas

Having teamed up with Tesla for the Sparks, Nevada gigafactory, Panasonic is slated to open a second battery production facility this time in De Soto Kansas. The company hopes to begin production at the location in March of 2025 and has already broken ground on construction.

Samsung SDI / Stellantis – Kokomo, Indiana

This is the first of two plants being built by the joint venture between Samsung SDI and Stellantis. This first one is expected to start production in the first quarter of 2025.

AESC – Florence, South Carolina

AESC recently broke ground on its South Carolina battery facility which expects production to begin in 2026. The batteries produced at the location will used by BMW at its Spartanburg, South Carolina factory.

Samsung SDI / GM – New Carlisle (South Bend), Indiana

Expected to begin production in 2026, this is one of four GM battery manufacturing facilities in the United States. As with the other three, it will be tasked with battery production for the Ultium platform.

Ford / CATL – Marshall, Michigan

Chinese battery maker CATL was put on pause by Ford in late 2023 but has now resumed construction, the facility will start production in 2026.

AESC – Florence, South Carolina

AESC announced that it would open a second battery facility in its partnership with BMW in Florence County. Items produced at this second location will be used at BMW’s facilities in Mexico. AESC expects production to begin at this plant in 2027.

To hear the latest gigafactory updates and announced projects network with peers and solution providers and attend talks from industry leaders, book your place to attend the 2nd Battery Gigafactory Summit USA: Advances in Planning, Engineering and Operations taking place in Nashville, Tennessee, on November 13–14, 2024.

For more information, visit our website or email us at info@innovatrix.eu for the event agenda.