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Get filing alertsEnerSys scales down SC lithium plant to 1 GWh, pivots to defense, secures $150M DOE grant
Filed July 23, 2026 · Period ending July 23, 2026 · ~1 min read
Key Changes
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Reduced planned South Carolina lithium-ion facility capacity to 1 GWh from originally announced 4-5 GWh, with materially smaller footprint, to focus on aerospace, defense, and specialized industrial applications requiring secure supply chains.
Item 8.01 — Other Events verify on EDGAR → -
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Secured revised DOE grant of ~$150M (subject to final documentation) plus up to $200M in state/local incentives; total net investment estimated at ~$500M, to be funded via government support and operating cash flow.
Item 8.01 — Other Events verify on EDGAR → -
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Ending technology partnership with Verkor SAS for the gigafactory project; will instead leverage established technology partnership within existing aerospace and defense supply base.
Item 7.01 — Regulation FD Disclosure verify on EDGAR → -
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Board approved revised investment plan; construction expected to begin first half of fiscal 2028 (subject to customary approvals including finalized DOE award), with full production ~3 years after construction starts.
Item 8.01 — Other Events verify on EDGAR →
Summary
EnerSys has significantly scaled back its planned South Carolina lithium-ion manufacturing facility, reducing capacity from 4-5 gigawatt-hours to 1 gigawatt-hour and shrinking the physical footprint. The strategic pivot refocuses the plant on aerospace, defense, and specialized industrial applications where domestic, foreign-entity-compliant supply chains are critical, rather than broader commercial markets.
The company secured a revised $150 million DOE grant (subject to final documentation) and up to $200 million in state and local incentives, with total net investment estimated at $500 million. The company is terminating its technology partnership with Verkor SAS, originally announced in June 2023 for a U.S. lithium battery gigafactory.
EnerSys will instead leverage an established technology partner within its existing aerospace and defense supply base. The Board has approved the revised plan, with construction targeted for the first half of fiscal 2028 and full production approximately $150 million three years later, placing operational capacity around 2031. For retail holders, the scaled-down scope reduces capital intensity and market risk while aligning with defense-sector demand where EnerSys has existing relationships, though the facility's contribution to earnings remains years away.
Section-by-Section Diff
Event · Item 7.01 — Regulation FD Disclosure
Item 7.01 — Regulation FD Disclosure filed; see Key Changes for terms.
Added in current filing · verify on EDGAR →
EnerSys previously issued a press release on June 14, 2023 announcing that it had entered into a non-binding memorandum of understanding with Verkor SAS, to explore the development of a lithium battery gigafactory in the United States. EnerSys intends to transition away from its technology relationship with Verkor and does not expect Verkor to serve as the project’s technology partner going forward.
EnerSys is ending its technology partnership with Verkor SAS for a planned U.S. lithium battery gigafactory. The original relationship was established through a non-binding memorandum of understanding in June 2023. The company will need to identify a new technology partner or develop the technology independently to proceed with the gigafactory project.
Event · Exhibit 99.1
Added in current filing · verify on EDGAR →
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.
The facility will have initial production capacity of approximately 1 gigawatt hour, purpose-built for defense applications requiring secure, foreign entity of concern (FEOC) compliant lithium-ion cells. The refined strategy focuses on aerospace, defense, and specialized industrial applications where U.S.-based production is a critical requirement, representing incremental demand beyond the company's current business.
Added in current filing · verify on EDGAR →
EnerSys intends to use federal, state, and local funding, and operating cash flow to support the capital requirements of the factory. EnerSys’ Board of Directors has formally approved the investment and development plan.
The Board of Directors has formally approved the investment and development plan. The company will fund the facility using federal, state, and local funding plus operating cash flow. EnerSys previously disclosed a South Carolina and Greenville County incentive package valued at approximately $200 million.
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Figures/quotes linked to EDGAR · Narrative written by AI · Jul 24, 2026 · How we verify