KORE Power Halts Development of KOREPlex Battery Plant

Categories: Arizona Business NewsArizona State News

The currently halted KOREPlex battery manufacturing plant site in Buckeye, Arizona.

News Summary

KORE Power has announced the halt of its $1 billion lithium-ion battery manufacturing plant, KOREPlex, in Buckeye, Arizona. The decision comes amidst leadership changes and financial challenges, prompting the company to list the project site for sale. While initially set to create 3,000 jobs, the project faced delays and funding issues, including a significant lien from the contractor. Despite pausing KOREPlex, KORE Power remains optimistic about the market for domestic battery production amid ongoing developments in Arizona’s renewable energy sector.

Arizona – KORE Power has announced that it is halting the development of its $1 billion lithium-ion battery manufacturing plant, known as KOREPlex, located in Buckeye, Arizona. The company is currently working to sell the project site after shelving its plans for the facility. Initially, KOREPlex was set to span 2 million square feet and create around 3,000 jobs in the region, making it a significant project for local economic development.

This decision comes amidst leadership changes within KORE Power, as Jay Bellows has been appointed as the new CEO, replacing the former leader, who indicated that the decision to stop the project was significant yet necessary for the company’s future. The halt in development is also a reflection of recent funding challenges faced by the company.

Site Sale and Financial Challenges

The KOREPlex site was officially listed for sale in mid-January 2025, following years of construction delays and escalating costs that ultimately contributed to the decision to abandon the project. Despite receiving conditional commitment for an $850 million loan from the U.S. Department of Energy in the summer of 2023, KORE Power never secured taxpayer funding for the KOREPlex project, leading to further financial strain.

To further complicate matters, a lien for nearly $10.4 million was filed against the KOREPlex property by Yates Construction, the general contractor, in an effort to secure payment for services already rendered. This financial construction rattled the company’s plans for the facility, exacerbating the already challenging circumstances.

Initial Support and Market Outlook

The plans for KOREPlex received unanimous support from the Buckeye Valley Chamber of Commerce last year, demonstrating local enthusiasm for the project. However, despite this backing, KORE Power has now stated that while the KOREPlex will not move forward at this time, the company believes there remains a strong market for American-made battery cells and modules.

The KOREPlex project initially originated in May 2021 and had experienced multiple delays over the years, culminating in the current decision. KORE Power’s commitment to the battery manufacturing sector and its plans to support domestic battery production underline the complexities facing investors and manufacturers in this rapidly evolving industry.

Broader Context and Future Developments

While KORE Power’s announcement is a setback, the broader Phoenix area continues to see significant project activity, with 14 notable announcements related to manufacturing and renewable energy from 2020 to 2023. This underscores Arizona’s growing role in the renewable energy sector.

In parallel to the halted KOREPlex project, ongoing developments in electric battery storage are taking shape. Salt River Project and CMBlu are collaborating on a new non-lithium battery project that will begin construction this year to support long-duration energy storage needs. This initiative signals a broader commitment to advancing renewable energy solutions in Arizona.

Additionally, the planned Copper Crossing Energy and Research Center in Florence, Arizona, is set to support energy storage that utilizes solar energy collected during the day to power homes at night, further emphasizing the importance of innovation in energy solutions within the state.

The KORE Power decision reflects broader economic challenges and leadership changes in the energy sector, as companies navigate complex funding landscapes and significant market demands. As KORE Power shifts its focus, the future of battery manufacturing and renewable energy projects in Arizona remains dynamic and subject to rapid change.