Expion360, Inc., an RV lithium batteries and accessories supplier, has signed a non-binding letter of intent (LOI) with an Asian lithium battery manufacturing equipment producer to purchase lithium battery manufacturing equipment.
Expion360 will use the manufacturing partner’s equipment to build a 1 million-square-foot lithium cell manufacturing facility. Expion360 will produce up to 250,000 Type 26650 lithium battery cells per day in Redmond, Oregon.
The LOI is non-binding and contingent on a definitive agreement as well as funding. Expion360 expects the engineering plans and facility site planning to begin before the year-end.
The company estimates the cost associated with the plant construction to total approximately $450 million.
“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,” CEO John Yozamp said. “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.”
Expion360 plans to use the manufacturing partner’s intellectual property, engineering capabilities and manufacturing equipment to construct, and initially operate, its planned manufacturing facilities. The manufacturing partner is expected to supply the factory with components necessary to manufacture the lithium battery cells and to train Expion360’s employees how to operate the battery manufacturing equipment.
After the anticipated definitive agreement signing with the partner, Expion360 plans to secure the funding necessary for the project. Expion360 plans to use a combination of equity, debt and federal grants to pay for the construction project.
China is currently the world leader in the global lithium battery supply chain, controlling more than 70% of the total global lithium-ion battery manufacturing capacity, Expion360 said.
According to Statista.com, Chinese manufacturer Contemporary Amperex Technology Company Limited (CATL) was the leading lithium-ion battery maker in 2021 with 32.5% market share. Korean LG Chem had 21.5% market share and Panasonic 14.7% market share.
See the Expion360 Form 8-K filed with the U.S. Securities and Exchange Commission for further details.
