EnerSys Joins Hands With Verkor To Open Lithium Battery Factory In US - EnerSys (NYSE:ENS)

EnerSys (NYSE:ENS) inked a non-binding Memorandum of Understanding (MoU) with Verkor SAS to explore the development of a lithium battery gigafactory in the U.S.

Verkor is a European leader in battery technology and is experienced in designing and manufacturing electrodes, battery cells, and modules.

As per the MoU, the companies are chalking out plans, searching for an optimal location, and evaluating funding options for opening the facility.

EnerSys has been focusing on driving the global clean energy transition by significantly enhancing lithium-ion battery production across various end markets and applications.

The new factory will aid EnerSys in optimizing cell sizing in battery solutions for its customers and meeting clients' specific manufacturing needs for domestically sourced batteries.

"We expect our current U.S. battery production to continue to yield credits through the Inflation Reduction Act that will help us fund this important manufacturing facility. EnerSys' eligibility for the IRA incentives reinforces the critical nature of the products and services we provide. In turn, we expect our future production of lithium batteries in the U.S. will enable further benefit from the incentives of the IRA," said President & CEO David M. Shaffer.

Last month, the company reported Q4 FY23 revenue of $989.9 million, beating the consensus of $950.98 million and adjusted EPS of $1.82, surpassing the Street estimate of $1.38.

Price Action: ENS shares closed lower by 0.25% at $105.45 on Wednesday.

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