Renewable energy company proposes building battery factory in Shelbyville, Kentucky

A renewable energy company has proposed building a $712 million battery plant in Shelbyville, according to state incentives reports. It plans to develop utility-scale energy storage technology to support the transition to renewable energy.

Under negotiated preliminary state incentives, Shelbyville Battery Manufacturing, the company behind the project, expects to create nearly 1,600 jobs at the proposed plant at an average hourly wage of about $25, including benefits.

The project has received preliminary approval for $35 million in incentives through the Kentucky Business Investment Program and $5 million through the Kentucky Enterprise Initiative Act, according to a state database.

Representatives from Shelbyville Battery Manufacturing and the Shelby County Chamber of Commerce could not be reached for comment on the project.

The company was previously listed in state records as Canadian Solar US Battery Manufacturing, but filed for a name change in Kentucky last month. Canadian Solar, a global renewable energy company, recently announced an $800 million project involving 1,200 jobs across the river in Jeffersonville, where the company plans to build a solar cell facility.

In Shelbyville, the company’s proposed factory would produce lithium-ion battery cells, battery packs and modules “for the purpose of creating industrial-scale energy storage containers.”

Battery storage technology, which enables utilities to store generated energy for later use, is a key part of efforts to decarbonise the electricity grid.

Peak generation from renewable sources like solar and wind rarely coincides with peak customer demand. To meet demand when the sun isn’t shining and the wind isn’t blowing, utilities can implement battery storage, allowing intermittent renewable energy to be transmitted to customers when needed.

If the battery plant is built, it would join numerous other renewable energy and electric vehicle projects across the state that have totaled billions of dollars in recent years.

Shelbyville, about 30 minutes east of Louisville, was also recently considered by Ford Motor Co. to build a $400 million plant to make components primarily for electric vehicles, The Courier Journal previously reported.

This story may be updated.

Contact environmental reporter Connor Giffin at [email protected] or X @byconnorgiffinn. Contact business reporter Olivia Evans at [email protected] or X in @oliviamevans_.