Battery Boom: Energy-storage firms bet big on South Carolina, Upstate
Capital Investments surge as player stake claims in the Energy Storage Value Chain
April 4, 2024, South Carolina — The stunning breakout of investments by energy-storage companies in South Carolina, to the tune of $8 billion over the last two years, suggests a strong bet on the future of energy storage in the Palmetto State. According to David Clayton, the executive director of the Clemson University International Center for Automotive Research, this substantial and diversified investment denotes a commitment to developing a comprehensive energy storage value chain, a first of its kind in any state.
Securing Energy Material Supply and Building Batteries
An overwhelming focus on electric vehicle applications has led to an increased demand for batteries in the industrial area. The significant materials required for battery production include rare elements like lithium and cobalt. This requirement explains why energy storage companies are keen on investing in American facilities. Clayton points out that this initiative will strengthen the domestic energy storage production supply chain. According to Lenore Elle Hawkins’ report for Nasdaq, a significant portion (around 30%) of lithium-ion battery production in 2023 came from just one Chinese company, Contemporary Amperex Technology Co. Ltd.
South Carolina is set to benefit from lithium recovery and battery recycling operations. Redwood Materials plans to invest $3.5 billion in a facility in Berkeley County; Cirba Solutions eyes a $300 million recycling facility in Richland County, and Albemarle Corp. intents on a $1.3 billion lithium recovery facility in Chester County.
The arrival of the battery industry has seen significant investments in the manufacturing sector. BMW plans to invest $1.7 billion to enable its Spartanburg County plant to produce six fully electric models by 2030, including building a $700 million battery-assembly plant in Woodruff. The battery cells for the project will be sourced from a factory being built in Florence County by AESC, with a total investment of $1.6 billion planned for their South Carolina operations. Furthermore, EnerSys announced a $500 million investment in Greenville County to produce lithium-ion batteries.
Energy Storage as a Power Supply Solution
Interestingly, large-scale battery production plants, which are significant consumers of electric power, might also become part of the power supply solution. Clayton believes that energy storage companies will likely contribute to expanding production capacity. Moreover, favorable sunny conditions in the Southeast suggest that solar energy use is likely to increase. Energy storage is not only essential for stabilizing this supply but also offers a promising market opportunity. Clayton accentuated, “It’s a billion-dollar, if not trillion-dollar opportunity.”
In summary, South Carolina’s energy-storage investment landscape includes many major industry players. AESC, BMW Manufacturing, Redwood Materials, Albemarle Corp., Cirba Solutions, and EnerSys are committing significant capital investments in their respective facilities in South Carolina, aggregating to $7.9 billion. This prodigious leap in energy manufacturing solidifies South Carolina’s lead role in shaping the future of the energy storage industry in the United States.
