Kontrolmatik's Pomega Breaks Ground in South Carolina on 3-GWh Lithium Battery Plant
- Kontrolmatik Technologies, via its subsidiary Pomega Energy Storage Technologies, has broken ground on a 3-GWh lithium-ion battery manufacturing plant in South Carolina. This is an important step in the development of sustainable energy solutions, as the factory will produce lithium-iron phosphate cells for North American grid-scale energy storage applications.
What happened?
Kontrolmatik Technologies, via its subsidiary Pomega Energy Storage Technologies, recently hosted a groundbreaking ceremony for its previously announced 3-GWh lithium-ion battery manufacturing plant in South Carolina. The 500,000-sq-ft facility in Colleton County is expected to begin production in mid-2024, create about 575 new jobs and have an initial production capacity of 3 GWh. The company plans to later increase capacity to 6 GWh and has secured land to expand operations. The company will invest $300 million in upfront capital expenditures in the new facility.
Why does it matter?
This is an important step in the development of sustainable energy solutions, as the factory will produce lithium-iron phosphate cells for North American grid-scale energy storage applications. In addition to manufacturing the battery cells at the South Carolina plant, Pomega will also manufacture and assemble turnkey battery energy storage systems (BESS), including modules, cabinets and final containerized energy storage solutions. The company has already begun signing offtake agreements for its future capacity and has received a generous package of various employment-related tax credits and exemptions from the South Carolina state officials.
What's next?
According to the company’s projections, the total estimated amount of production tax credits (PTC) expected to be collected as per IRA is $916 million. This will be collected over a period of seven years, phasing out at 25% per year between 2030-2032. With the groundbreaking ceremony complete, the next step is to begin construction of the facility and begin production. The company is confident that this new facility will help to meet the increasing demand for energy storage solutions in the US and North America.
