Kontrolmatik Technologies, via its subsidiary Pomega Energy Storage Technologies, hosted a groundbreaking ceremony for its previously announced 3-GWh lithium-ion battery manufacturing plant in South Carolina.
As construction of its lithium-ion battery factory in Ankara, Turkey, nears completion, Kontrolmatik Technologies announced in December its plan to build a 500,000-sq-ft facility in Colleton County that is expected to begin production in mid-2024, create about 575 new jobs and have an initial production capacity of 3 GWh. The company plans to later increase capacity to 6 GWh and has secured land to expand operations. The company will invest $300 million in upfront capital expenditures in the new facility.
Pomega will manufacture lithium-iron phosphate cells designed exclusively for North American grid-scale energy storage applications. In addition to manufacturing the battery cells at the South Carolina plant, Pomega will also manufacture and assemble turnkey battery energy storage systems (BESS), including modules, cabinets and final containerized energy storage solutions.
When production begins at the company’s South Carolina plant, Pomega will be one of the first U.S. manufacturers of lithium-ion batteries dedicated exclusively to the domestic utility-scale energy storage market, as opposed to the electric vehicle market where the vast majority of new investments are currently focused. The company has already begun signing offtake agreements for its future capacity.
JLL, a leading professional services firm specializing in real estate and investment management, led the nationwide site selection process. The JLL team analyzed more than 200 sites to identify locations that could be suitable for the plant. Pomega is proud of the strong relationships it has already established with South Carolina state officials, who have offered a generous package of various employment-related tax credits and exemptions. As for the expected production tax credits (PTC) expected to be collected as per IRA, the calculation is based on an annual PTC of $35/kWh for battery cells and $45/kWh for modules. Taking into account the company’s projected product mix for a total of 3 GWh of PTC for 2024-2029, phasing out at 25% per year between 2030-2032, the total estimated amount is $916 million.
News item from Pomega