Greenville’s much-hyped battery gigafactory is getting a serious trim. EnerSys is retooling the lithium-cell plant it proposed for Greenville, narrowing the scope from a broad gigafactory to a purpose-built facility for aerospace, defense and other specialized industrial customers. The company says the revised plan is backed by a roughly $150 million Department of Energy grant and an estimated $500 million of net investment, and that its board has formally approved the development plan. EnerSys now expects an initial production capacity of about 1 gigawatt-hour and says construction could begin in the first half of fiscal 2028, with full production roughly three years after ground-breaking.
In a company release, via Business Wire, EnerSys said the DOE award is subject to final documentation and customary conditions. The release added that the company plans to fund the build with a mix of federal, state and local support plus operating cash flow, and that the board has approved the investment and development plan. The statement frames the project as purpose-built to meet defense customers’ requirements for secure, FEOC-compliant cells.
From Gigafactory Vision To Defense-Focused Build
EnerSys first laid out a much larger blueprint in February 2024, a proposed 4 GWh factory on roughly 140 acres at the Augusta Grove business park that was intended to serve commercial, industrial and defense markets. As detailed in EnerSys, that plan included a 500,000-square-foot footprint and an incentive package valued at about $200 million. The updated strategy trims initial capacity to roughly 1 GWh and narrows the plant’s scope to meet the stricter requirements of defense and other specialized applications.
Local Incentives And Jobs Still On The Table
State and county officials previously offered a comprehensive incentive package valued at about $200 million to support the project, and local reporting noted EnerSys initially projected as many as 500 new jobs tied to the factory. Coverage by Greenville.com says the company planned to combine those incentives with Inflation Reduction Act tax benefits and potential federal funding. According to Greenville County records (greenvillecounty.org), the county posts Fee in Lieu of Tax and incentive agreement documents and council agenda PDFs, including a "FEE IN LIEU OF TAX AGREEMENT" entry. Greenville County agenda PDFs on greenvillecounty.org show council resolutions authorizing and approving Fee in Lieu of Tax and incentive agreements, indicating the county's established process for large incentive packages.
Splitting With Verkor And Leaning On Defense Partners
The company’s update also says EnerSys intends to transition away from its technology relationship with Verkor and does not expect Verkor to serve as the project’s technology partner going forward. EnerSys told investors it will rely instead on its decades-long relationships within the aerospace and defense supply base to ensure FEOC compliance and meet military specifications, as described in its Business Wire release. That pivot appears aimed at limiting third-party exposure for sensitive defense work while keeping manufacturing on U.S. soil.
Timeline, Funding And What To Watch
EnerSys says construction could begin in the first half of fiscal 2028, with full production expected roughly three years after ground-breaking, timelines that remain contingent on approvals and final DOE paperwork. The new announcement frames this award as a “revised” grant. Local permitting, contractor selection and the final DOE documentation will be the milestones to watch as the project moves forward.
For Greenville, the revised plan still promises federal and state investment and a new kind of high-tech manufacturing base, but on a narrower scale than originally pitched. County planners, workforce groups and nearby suppliers will be watching the approvals process closely as EnerSys moves from concept toward construction under a defense-first mandate.
