Expion360, a lithium battery and accessories maker for RVs and other markets, signed a non-binding letter of intent (LOI) with an Asian producer of lithium battery manufacturing equipment.
The LOI will allow Expion360 to purchase lithium battery manufacturing equipment in connection with its plans to build a large-scale lithium cell manufacturing facility in Redmond, Oregon. The equipment is planned to produce up to 250,000 Type 26650 lithium battery cells per day.
Expion360 expects the engineering plans and site planning of the facility to begin before the end of 2022. The company estimates the cost associated with the construction of the plant to total approximately $450 million, and will utilize a combination of equity, debt and federal grants to pay for the construction project.
Expion360 plans to utilize the manufacturing partner’s IP, engineering capabilities and manufacturing equipment to construct and initially operate its planned manufacturing facilities. The manufacturing partner is also expected to supply the factory with all the components necessary to manufacture the lithium battery cells, and to train Expion360′s employees in the operation of the battery manufacturing equipment.
“The launch of this large-scale factory project is a major step both for Expion360 and other companies in the U.S. that would benefit from a domestic source of 26650 cylindrical lithium-ion batteries,” said Expion360 CEO John Yozamp. “The biggest constraint for clean energy power and electric mobility manufacturers today is their supply chain and the sourcing of lithium-ion batteries. We intend to alleviate these constraints with our new mega battery factory.”
China is currently the world leader in global lithium battery supply chain, controlling more than 70% of the total global lithium-ion battery manufacturing capacity. The new Expion360 large-scale factory is anticipated to meet the growing demand for lithium batteries and reduce reliance on foreign manufacturers as the U.S. continues its transition towards a clean energy economy, the company said.
