FRANKFORT, Ky. — Kentucky has been chosen as the site for a significant investment of nearly $712 million by a battery manufacturing company to establish a facility aimed at producing large-scale industrial batteries intended for energy storage and distribution. This development is considered vital for maintaining a dependable electric grid across the nation, as stated by officials on Friday.
The new Shelbyville Battery Manufacturing plant is projected to create 1,572 jobs upon reaching its full operational capacity, further strengthening Kentucky’s involvement in the burgeoning battery technology sector. Projects from firms focused on manufacturing batteries for vehicles have amassed nearly $12 billion in investments, which are anticipated to generate upwards of 10,280 permanent positions throughout the state.
Kentucky Governor Andy Beshear expressed confidence in the state’s commitment to becoming a leading hub for battery production in the United States, emphasizing this milestone during the announcement of the Shelbyville initiative.
The plant is expected to initiate production by late 2025 and will be a subsidiary of Canadian Solar. It will manufacture batteries meant for use by utility companies and various customers at a large scale. These batteries measure approximately 20 feet in length, 8 feet in width, and nearly 9 feet in height. They are designed to complement renewable energy sources like solar and wind, and are deemed critical for achieving a sustainable energy future along with ensuring power grid reliability.
These large batteries are capable of providing a consistent power supply during times when renewable resources are not generating electricity. For example, the energy generated from nighttime winds can be stored when electricity demand is lower and utilized during peak hours when consumption surges during the day.
“Energy storage is an essential component of the modern and evolving electricity grid,” stated Shawn Qu, chairman and CEO of Canadian Solar. “Battery cells are vital to a utility-scale energy storage system. This venture positions Kentucky as a key player in the movement to create a robust and secure electricity grid for the nation.”
Historically, Kentucky coal has been a foundational power source for the nation. Governor Beshear noted that the new Shelbyville facility marks a transition, as it will manufacture batteries that contribute to ensuring reliable electricity flow for consumers across the country.
“This represents energy security for the United States,” the governor affirmed. “It’s linked to our national security. The decision to establish this operation in Kentucky signifies our role in bolstering the security of the entire nation’s infrastructure and power grid.”
This battery plant is projected to be the most significant economic development venture in Shelby County’s history, ranking as the third-largest job creation project during Beshear’s nearly five-year period in office.
Shelbyville Mayor Troy Ethington characterized the initiative as a transformative moment for his community, situated just east of Louisville. The facility will become the leading employer in Shelby County, providing fresh opportunities for local residents, and the company has indicated a commitment to local hiring for these positions. Additionally, the Shelbyville site will house a research and development lab dedicated to advancing battery technology.
“This investment guarantees that more families in Kentucky will prosper, and it supports the commonwealth’s remarkable economic growth,” noted Governor Beshear.
State officials have offered a conditional package of performance-based tax incentives tied to the company’s investment plans, job creation, and employee compensation, according to the state’s reports.