Battery cells developer KORE Power bags USD 75m to build gigafactory

US lithium-ion battery cells developer KORE Power Inc has closed a USD-75-million (EUR 72.4m) tranche of an investment round led by Siemens Financial Services that is expected to total USD 150 million.

Other participants in the capital increase include contracting services provider Quanta Services Inc, as well as strategic partners Nidec Motor Corporation, Honeywell Ventures, Trog Hawley Capital, and an unnamed utility-scale energy storage provider. Goldman Sachs & Co LLC served as the exclusive placement agent.

KORE is a developer of lithium-ion battery cells and a manufacturer of integrated solutions for the e-mobility and energy storage sectors. The company is getting ready to soon begin building works on a 6-GWh gigafactory in the Phoenix area of Arizona, to be known as the KOREPlex. It said it will use the proceeds from the investment round to finance the construction of the facility and to buy long lead-time items required for this process.

The KOREPlex is seen to begin initial production in late 2024. Eventually, its annual production capacity could be doubled to meet market demand, KORE noted.

According to the company, its new facility will be among the first in the country to be constructed independently of an automotive OEM, allowing for the supply of batteries to a wide range of e-mobility and energy storage customers.

So far, KORE has announced a series of deals to secure a local supply of materials used in battery cell manufacturing.

“In the coming months, we expect to announce additional agreements demonstrating our commitment to building a domestic supply chain for the KOREPlex and embracing a circular lifecycle for our products,” said Lindsay Gorrill, CEO and co-founder of KORE Power.

(USD 1 = EUR 0.965)

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