Ormat secures up to 750 MWh of multi-year battery supply from Gotion
Image by Gotion Inc on Linkedin.
Ormat Technologies Inc (NYSE:ORA), a US geothermal company with growth plans in energy storage, has signed a “multi-year” battery supply contract of up to 750 MWh with Chinese battery cell manufacturer Gotion High-Tech Co Ltd (SHE:002074).
Furthermore, the companies are discussing additional supply contracts to source US-made batteries from Gotion's planned battery facility in Manteno, Illinois. This will enable Ormat to take advantage of higher Investment Tax Credits. Plans for Gotion’s USD-2-billion (USD 1.88bn) electric vehicle (EV) battery gigafactory in Illinois were only announced earlier this month. Set to start production next year, the facility is expected to produce 10 GWh of lithium-ion battery packs and 40 GWh of lithium-ion battery cells once completed.
The agreement between Ormat and Gotion is with a variable pricing structure, partly linked to Lithium Carbonate prices.
“We have been encouraged by the long-term trends we’re seeing in the storage segment, and securing a critical battery supply while solidifying our supply chains gives us confidence in our ability to successfully advance our projects currently in development and achieve our long-term capacity goals,” Ormat Technologies chief executive Doron Blachar said in an announcement on Monday, adding that the company’s 2025 energy storage goal of 600 MW to 670 MW remains well within reach.