In a significant stride towards revolutionizing the battery industry in the United States, American Battery Factory (ABF) has successfully raised capital in its Series A funding round. This emerging battery manufacturer is at the forefront of developing the nation’s first network of lithium iron phosphate (LFP) battery cell gigafactories. The funding, led by Lion Energy among other investors, marks a crucial milestone in propelling ABF’s ambitious plans.
Lion Energy, a renowned developer and manufacturer of top-tier energy storage products, played a pivotal role in nurturing ABF during its 18-month incubation period. This period of growth and development culminated in ABF’s public unveiling in March 2022. Following its emergence, ABF entered into a significant offtake agreement with Lion Energy in May 2022, setting the stage for the delivery of 18 GWh of LFP battery cells. These cells, boasting outputs ranging from 105 to 300 Ah, are designed to power a variety of Lion Energy solutions, spanning portable solar generators, residential and commercial energy storage systems, and utility grid-level lithium battery-based storage.
The centerpiece of ABF’s vision is the construction of a colossal gigafactory in Tucson, Arizona. This facility is set to become the largest LFP battery cell gigafactory in the United States. With the infusion of capital from the Series A funding, ABF is poised to advance to the first phase of its gigafactory development, enabling the acquisition of production equipment and state-of-the-art security technology.
Jim Ge, the CEO of American Battery Factory, expressed his optimism about the future: “The first major step on this journey will be the construction in Arizona of the largest U.S. gigafactory for producing lithium iron phosphate (LFP) battery cells, with initial development funded by this Series A round. We anticipate delivering our first battery cells within the next 18 months.”
Among the investors, FNA Group stands out as a hybrid manufacturing partner. Renowned for its sophisticated technology and market leadership in pressure washers, FNA Group is set to contribute its expertise to ABF’s battery cell production. The company, with a global presence spanning the United States, China, Italy, and Australia, is known for its vertical integration and commitment to innovation. In a recent strategic move, FNA Group shifted critical component manufacturing to North America, bolstering its research and development capabilities to drive the creation of new and more efficient products.
As ABF progresses towards its goal of transforming the battery landscape in the United States, the successful Series A funding round underlines the industry’s recognition of its potential. With Lion Energy’s support and a consortium of investors, ABF is primed to make substantial strides in the production of cutting-edge LFP battery cells, propelling the nation towards a greener and more sustainable future.