Company Announces Nearly $712 Million Energy Storage Battery Project in Kentucky

FRANKFORT, Kentucky — A battery maker has chosen Kentucky for a nearly $712 million project to produce industrial-size batteries used to store and distribute energy, a process seen as increasingly important to the nation’s reliable electric grid, officials said Friday.

The Shelbyville Battery Manufacturing facility will employ 1,572 workers when the project reaches full capacity, deepening Kentucky’s ties to new battery manufacturing technologies. Companies that want to do batteries for powering vehicles announced projects expected to total nearly $12 billion in new investment and create more than 10,280 jobs in Kentucky.

“With this investment, we are committed to becoming nothing but the battery manufacturing capital of the United States,” Gov. Andy Bescher said in announcing the new project in Shelbyville.

Production at the Shelbyville battery plant is expected to begin in late 2025.

The plant, part of Canadian Solar Inc., will produce batteries used by utilities and other customers for large-scale energy storage. According to the company, the batteries are about 20 feet long, 8 feet wide and nearly 9 feet tall. They can work in tandem with solar, wind or other forms of power generation, and are seen as critical to both the future of green energy and a secure grid as demand for electricity in the US continues to grow.

Batteries can maintain a constant flow of energy when sources such as wind and sun are not producing. For example, when people are sleeping and therefore using less electricity, energy generated from the wind blowing at night can be stored in batteries – and used when demand is high during the day.

“Energy storage is an important part of the emerging new electricity grid,” said Sean Koo, Canadian Solar’s chairman and CEO. This project will put Kentucky at the center of efforts to build a reliable and secure electricity grid for this country.”

Canadian Solar has a global presence in the development and production of battery energy storage systems for utility installations. Kentucky’s ties to the company will only strengthen the Bluegrass State’s role in the energy sector, Bescher said.

For centuries, Kentucky coal has helped power the nation. The Shelbyville plant will now produce batteries that are used across the country to ensure a reliable flow of electricity for consumers, Bescher said.

“This is energy security for the United States,” the governor said. – This is our national security. And this company choosing to do that in Kentucky means we’re going to be part of providing security for the entire nation’s infrastructure and network.”

The battery plant will be the largest economic development project in Shelby County history and the third largest job creation project announced during Beshear’s nearly five years as governor.

Shelbyville Mayor Troy Ethington called the project a milestone for his community, located east of Louisville. He said it will become Shelby County’s largest employer, creating new opportunities for residents. The company said it is looking to hire local workers to fill the jobs. The Shelbyville plant will also include a research and development lab that will help develop battery technology, the company said.

“This investment will ensure that more Kentucky families thrive and that the Commonwealth’s incredible economic growth continues,” Bescher said.

State officials have proposed a package of performance-based tax incentives for the battery project tied to the company’s investment, job creation and employee wages, the state said.