American Battery Factory Secures 4.5 GWh Offtake Agreements

American Battery Factory Inc. has secured offtake agreements totaling more than 4.5 gigawatt-hours of battery cells from its planned gigafactory in Tucson, Arizona, supporting the company’s goal of reaching an initial annual production capacity of 5.5 gigawatt-hours. The agreements, made with A-rated energy storage solution providers, cover at least the first five years of output and are expected to help finalize plant financing within the next three to four months. The funding will go toward construction and the installation of custom automation equipment for a fully automated production line capable of producing 314-ampere-hour battery cells, designed to improve efficiency and cost competitiveness.

Co-advisors Cantor Fitzgerald and Newmark are supporting the company’s capital formation and real estate strategy, respectively. Drawing on expertise from ABF-Asia, American Battery Factory expects to begin production in late 2027, with full capacity anticipated by 2028. The first phase of the facility will include the company’s headquarters and a 0.5-gigawatt-hour research and development center, alongside the main 5-gigawatt-hour manufacturing lines, each stretching nearly 500 yards.

The lithium iron phosphate cells produced at the facility feature a chemistry known for its safety and environmental sustainability, with an expected lifespan of up to 10,000 cycles, or more than 20 years. Jim Ge, CEO of American Battery Factory, noted that the offtake agreements advance the company’s mission to establish a domestic supply chain and accelerate growth in the U.S. clean energy economy.

Heath Vescovi-Chiordi, Director of Economic Development for Pima County, stated that the agreements mark a crucial step toward bringing the Tucson facility online and expressed strong support for the upcoming construction phase.

American Battery Factory has also formed partnerships with several technology and materials suppliers, including:

- Wuxi LEAD

- Honeywell

- Advanced Energy Materials

- First Phosphate

- Anovion

- Celgard

- FNA Group

- Microporous

- Lion Energy

- Aqua Metals

These collaborations will provide digital platforms, lithium sourcing, anode and separator materials, battery pack integration, and recycling solutions.

John Kem, President of American Battery Factory, added that the secured offtake agreements will help accelerate the full development of the Pima County facility and support the company’s strategic goal of becoming the leading U.S.-based manufacturer of LFP prismatic cells, contributing to a historic transformation in the nation’s energy infrastructure.