Envision AESC Announces $2 Billion Gigafactory In Kentucky

It will produce at least 30 GWh of batteries per year with an option for 40 GWh.

Envision AESC new-generation Gen5-811 AIoT battery

Mark Kane

By: Mark Kane

Apr 16, 2022 at 10:18am ET

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Envision AESC announced a $2 billion investment to build a lithium-ion battery plant in Bowling Green, Warren County, Kentucky.

According to the press release, the new gigafactory will have an annual output of 30 GWh (with the potential to expand to 40 GWh), which is expected to be sufficient for up to 300,000 vehicles (by 2027). Production is expected to begin in 2025.

Envision AESC already has a small battery plant in the US, located in Tennessee, which supplie Nissan. With the new, bigger plant, the company would like to supply "next generation battery technology" for "multiple global automotive manufacturers".

Envision AESC (formerly AESC - Nissan and NEC's JV - acquired by the Envision Group in 2019, in which Nissan - as far as we know - still holds a 20% share) is a battery arm of global green tech company Envision Group

By "next generation," Envision AESC means "30% more energy density than the current generation, reduced charging time and increased range and efficiency".

According to Nikkei, among Envision AESC's customers are Mercedes-Benz (Tuscaloosa, Alabama battery pack plant) and probably also Honda (small commercial vehicle slated for release in 2024).

The investment is expected to create 2,000 new jobs in Kentucky and increase its total EV battery production to at least 116 GWh (30 GWh Envision AESC and 86 GWh BlueOvalSK Battery Park - JV between Ford and SK Innovation's SK On). This is why the state decided to support the project:

"The new strategic partnership with Kentucky provides up to $116.8 million from state incentive programs and up to $5million grant-in-aid for skills training."

Envision AESC has battery plants also in Japan (the second one is under construction), the UK (the second one is under construction), China, and a project under construction in France.

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According to the press release, the plan is to expand the manufacturing capacity to 300 GWh per year by 2026. Considering the current state, it would be a 20-fold increase.

Envision AESC investment in brief:

location: Bowling Green, Warren County, Kentucky
value: $2 billion
production start: expected in 2025 (2027 at volume)
manufacturing capacity: 30 GWh per year (with an option for 40 GWh)
batteries: cells and modules for multiple global automotive manufacturers"
electricity: 100% renewable energy
size: approximately 3 million square feet
new jobs: around 2,000