(Bloomberg) -- Startup Kore Power, Inc. has raised $75 million of an anticipated $150 million financing round to fund construction of a lithium-ion battery factory in Arizona, betting the recently passed Inflation Reduction Act will boost demand for US-made cells.
Siemens Financial Services led the round, which also included Quanta Services, Nidec Motor Corp., Honeywell Ventures and Trog Hawley Capital. Kore, based in Idaho, has now raised about $150 million to date.
The company plans to break ground on its KorePlex factory near Phoenix next month, with cell production scheduled to start in late 2024. The plant’s annual production capacity will begin at 6 gigawatt-hours (GWh) of cells, with plans to expand to at least 12 GWh. Kore’s high-density cells are designed for use in transportation and stationary energy storage, and the factory will allow Kore’s customers to take full advantage of the IRA’s tax credits, which include an incentive for using US-made equipment. President Joe Biden has made building a domestic battery supply chain a key part of his climate change plans.
“We will have American workers and an American supply chain driving the growth of clean energy and vehicle electrification,” said Lindsay Gorrill, Kore’s co-founder and chief executive officer, in a release.
©2022 Bloomberg L.P.