American Battery Factory breaks ground on $1.2 billion Arizona gigafactory


American Battery Factory (ABF) announced it has broken ground on its Tucson, Arizona lithium-ferro-phosphate (LFP) battery cell gigafactory. The two million square foot gigafactory will provide an estimated 1,000 jobs.

ABF is investing $1.2 billion in capital to open the factory. An estimated $3.2 billion in economic impact in Arizona is expected as a result of its operations.

The global market for lithium batteries is expected to reach $105 billion by 2025, as demand is expected to continue to accelerate. Increased renewable energy and electrification of transportation and the home is slated to drive this sharp increase in demand.

Located on 267 acres on the Pima County Aerospace Research Campus, ABF’s gigafactory will be a site for both LFP cell production and further research and development opportunities. The factory is being built using Sprung Instant Structures’ rapid modular construction model. The R&D center and initial factory module are expected to be constructed by 2025.

The company has recently expanded its executive leadership team, adding former Major General John Kem as president and award-winning Dr. Jun Liu as chief scientist. The company has also secured strategic partnerships with companies like Celgard, Anovion and FNA Group.

“Today’s groundbreaking represents a significant milestone for Arizona’s battery industry,” said Arizona Gov. Katie Hobbs, who participated in the event. “With this transformational investment, American Battery Factory advances Arizona’s clean energy industry and bolsters continued economic growth in Tucson and Pima County.”

Several clean energy companies have found a home in Arizona, including First Solar, TPI Composites, KORE Power and ElectraMeccanica.

Clean Energy Associates projects the global battery market will grow 186% by 2025 from 2022 production totals of 1,706 GWh.

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