KORE Power, Inc. (KORE) closes the initial $75 million part of a private placement (the “Financing”) expected to total $150 million. Siemens Financial Services served as the lead investor and was joined by Quanta Services with extra strategic partners, including Honeywell Ventures, Trog Hawley Capital, Nidec Motor Corporation, and Goldman Sachs & Co. LLC, a leading utility-scale energy storage provider, which acted as KORE’s Exclusive Placement Agent, as per Business Wire.
KORE is a leading US-based developer of lithium-ion battery cells and integrated solutions for the e-mobility and energy storage sectors manufacturer. KORE intends to use the Financing proceeds to begin the construction of its KOREPlex gigafactory in the Phoenix area and to purchase long lead-time items needed for the facility’s construction.
KOREPlex
The KOREPlex is anticipated to have an initial yearly production capacity of 6 GWh of high-density lithium-ion cells. Production is also anticipated to expand to 12 GWh and beyond to meet market demand.
In addition, the KOREPlex will be among the first US battery cell gigafactories built independently of an automotive OEM. This independence will let KOREPlex provide batteries to many energy storage customers and innovative e-mobility.
KORE will break ground on the KOREPlex this 2022, with initial output starting in late 2024.
Siemens Financial Services is proud to be the lead investor committed to backing KORE with both our capital and know-how. We support the industries and create the infrastructure forming the backbone of the American economy and apply that same commitment to the development of the battery industry in the US KORE’s focus on manufacturing and vital industries such as energy storage, transportation electrification and grid modernization align with the strategic direction of SFS’ investments in the US to date.
Steffen Grosse, CEO of Equity Finance, Siemens Financial Services
Annual growth rate in energy storage market
Earlier this 2022, BloombergNEF forecasted a 30% compound yearly growth rate in the energy storage market. Furthermore, electrification in the mobility sector, including charging infrastructure and electric vehicles, is experiencing fast growth. As of July, global EV sales were up over 60% year-over-year (YoY).
Strengthening domestic manufacturing capabilities for battery cells will be critical to the transformation and build out of energy infrastructure in the United States. We are excited to invest and partner alongside leading energy innovators who also understand the importance of building and supporting a robust domestic supply chain. We expect our strategic alliance with KORE to enhance Quanta’s ability to deliver comprehensive energy solutions in partnership with our customers.
Andrew Schwaitzberg, leader of energy transition initiatives at Quanta Services
Demand for KORE’s domestically manufactured batteries is anticipated to increase further due to the domestic content needed to fully maximize the energy storage investment tax credit under the Inflation Reduction Act (IRA).
As a US-based manufacturer with the ability to supply top-tier lithium-ion cells, the KOREPlex will take us to the next level. We will have American workers and an American supply chain driving the growth of clean energy and vehicle electrification. In the coming months, we expect to announce additional agreements demonstrating our commitment to building a domestic supply chain for the KOREPlex and embracing a circular lifecycle for our products.
Lindsay Gorrill, CEO and Co-Founder of KORE Power
KORE Solutions
Since the announcement last year that the KOREPlex would be established in Arizona, KORE announced a series of agreements to secure the US supply of materials used in battery cell manufacturing. It also launched a vertically integrated energy storage solutions provider based in Vermont called KORE Solutions.
