The facility will open in phases beginning in late 2023. Its production capacity is expected to be around one GWh of battery and energy storage systems in the next five years.
Once the production begins, the company will produce cells and whole batteries for trucks, buses, and electric forklifts.
Referring to the new plant a Gigafactory, Electrovaya’s CEO Dr. Raj Das Gupta said, “The Gigafactory will 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’s State Government Support
The Company has secured critical support for the project from the state government. Empire State Development assists the project with over $4 million of tax credits and $2.5 million for funding through the Regional Council Capital Fund Program.
In addition, the New York Power Authority allocated more than 1.5 megawatts of low-cost hydropower to the Company under its Industrial Economic Development program to meet the increased load from the Gigafactory.
Dr. Raj says that the factory will produce battery products with 100% renewable energy, according to Electrive.
Electroya is also eligible for other New York State funds and U.S. federal funding.
“We are very please to have strong support from the State for this venture and expect to continue to find additional non-dilutive funding to support capital needs,” says the CEO.
Gigafactory to create 250 jobs
Notably, the plant is expected to create over 250 new jobs.
New York State Governor Kathy Governor stated, “Thanks to state resources, Electrovaya is bringing up to 250 jobs to Chautauqua Country 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.”
Justin E. Driscoll, New York Power Authority CEO, 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 in advance Governor Hocule’s nation-leading clean energy agenda.”