Electrovaya opts to build first US factory in New York State
Canada’s battery manufacturer Electrovaya has chosen New York State as the location for its first factory in the USA. Electrovaya will build the US plant in Chautauqua County and produce cells worth over one-gigawatt hour for commercial vehicles when fully operational.
Electrovaya wants to open the New York factory in several phases beginning by late 2023. The new plant will build on a disused electronics factory in the Town of Ellicott, near Lake Erie and not far from the border with Pennsylvania. Electrovaya said it selected the southern Chautauqua County facility due to its skilled labour force and available renewable electricity from the Niagara, amongst other advantages.
Once production starts, the company will make cells and whole batteries for electric forklifts, trucks and buses, among others, there. The factory will then join the other two factories Electrovaya operates in Canada.
Calling the new plant a Gigafcatory, Dr Raj Das Gupta, CEO of Electrovaya, said it would achieve three key objectives for the company. “Increase our manufacturing capacity to meet growing demand, improve our supply chain security and overall gross margins through added vertical integration, and develop additional market opportunities given the significant US-based manufacturing capacity.”
Electrovaya expects the final investment to amount to $75 million. At the same time, the company builds on various funding streams. Empire State Development (ESD) supports the project with up to $4 million in tax credits and $2.5 million of funding through the Regional Council Capital Fund Program.
Electrovaya will also be eligible for other New York State funds and US federal funding. In July, the New York Power Authority Board of Trustees approved an allocation of more than 1.5 megawatts of low-cost hydropower to meet the increased electric load resulting from the Gigafactory.
“We are very pleased to have strong support from the State for this venture and expect to continue to find additional non-dilutive funding to support capital needs,” said Das Gupta.
New York State Governor Kathy Governor commented, “Thanks to state resources, Electrovaya is bringing up to 250 jobs to Chautauqua County and deepening New York’s involvement in the growing clean energy sector. The race is on to capture the high-paying jobs that come with clean tech.”
New York Power Authority CEO Justin E. Driscoll added, “Niagara hydropower is essential to Western New York’s rapidly growing economy. By supporting Electrovaya’s expansion with clean, renewable hydropower, New York is supporting hundreds of jobs in an industry that will help advance Governor Hochul’s nation-leading clean energy agenda.”