Kore power has received a conditional commitment of $850 million from U.S. Department of Energy Supporting the construction of a battery factory in Arizona.

The funding will be provided by the Department of Energy’s Office of Loan Programs and will support the construction of the KOREPlex advanced battery manufacturing facility in Buckeye, Arizona, just outside of Phoenix. The loan was issued under the ministry’s Advanced Technology Vehicle Manufacturing Loan Program.

The 1.3 million square foot facility, KOREPlex, will house multiple production lines that manufacture batteries for electric vehicles and energy storage systems. The project is expected to produce 6GWh of lithium-ion batteries annually. Construction of KOREPlex began last year. The facility, which is expected to cost $1.25 billion and is expected to be completed in late 2024 or early 2025, will be built on a 214-acre site in Maricopa County.

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Coeur d’Alene, Idaho-based KORE Power officials and Arizona Senators Mark Kelly (Democrat) and Kirsten Sinema (Me) emphasize the importance of domestic battery production in prepared remarks bottom. Grand Canyon State has become a center of energy storage activity in recent years. Ecobat, a battery recycler and manufacturer, recently announced plans to build a facility in Casa Grande, Pinal County, roughly halfway between Phoenix and Tucson, Arizona.