US firm targets 1 gigawatt-hour capacity at lithium plant for military applications

US-based EnerSys has revised its strategy for a planned lithium cell manufacturing facility in Greenville, South Carolina. The updated plan shifts the primary purpose of the plant toward aerospace, defense, and specialized industrial energy applications. The company received a revised grant of approximately $150 million from the United States Department of Energy to support this updated direction. Final documentation and customary federal conditions still apply to the grant award. EnerSys estimates the total net investment for the facility at approximately $500 million. The company board of directors has formally approved the updated investment and development plan. The revised strategy places strong emphasis on technical requirements specific to military and aerospace hardware. The facility will manufacture specialized lithium-ion cells designed to meet strict defense specifications. “Under the updated plan, EnerSys expects the facility to have an initial production capacity of approximately 1 gigawatt hour, purpose built to meet the specialized requirements of defense applications,” said the company in a press release. Consumer electric vehicles and large-scale grid storage often prioritize high-volume, standardized production. Defense cells require precise engineering tailored for high power delivery, environmental tolerance, and operational longevity. Supply chain security with technology partnerships The Greenville plant will produce lithium-ion cells that comply fully with these federal security guidelines. Localizing cell fabrication secures the supply chain for critical military energy storage systems. Defense equipment relies on secure power sources for field electronics, unmanned systems, naval gear, and aerospace platforms. Domestic production reduces technical vulnerabilities associated with foreign component sourcing. To support the refined technical scope, EnerSys is changing its technological partnership strategy. The company is ending its technology relationship with Verkor, a French battery manufacturing firm. Verkor will not serve as the technology partner for the Greenville project going forward. EnerSys will instead leverage an established technology partnership within its existing US aerospace and defense supplier base. This supply base possesses decades of experience in designing custom energy solutions for defense applications. The project first entered planning in 2023 to expand domestic lithium cell production capacity. EnerSys worked with the Department of Energy to evaluate the optimal scope and technical focus for the facility. The evaluation led to the current defense-focused strategy. Funding to adhere to operational timeline Funding for the $500 million facility will combine federal, state, and local support with internal company funds. State and local incentives from South Carolina and Greenville County account for approximately $200 million. EnerSys will use operating cash flow to fund the remaining capital requirements. EnerSys expects to begin construction on the Greenville facility in the first half of fiscal year 2028. Actual groundbreaking remains subject to customary approvals and regulatory conditions. The company estimates that the factory will achieve full production status approximately three years after construction starts. Once fully operational, the plant will supply domestic lithium-ion cells to defense customers requiring secure, foreign-independent energy storage technologies. Recommended ArticlesGet the latest in engineering, tech, space & science - delivered daily to your inbox.An active and versatile journalist and news editor. He has covered regular and breaking news for several leading publications and news media, including The Hindu, Economic Times, Tomorrow Makers, and many more. Aman holds expertise in politics, travel, and tech news, especially in AI, advanced algorithms, and blockchain, with a strong curiosity about all things that fall under science and tech.