Leaving 3000 job opportunities unfulfilled, Kore Power cancels its $1.25 billion battery plant in Arizona due to delays, cost increases, lack of funding, and leadership changes.
US’s Kore Power has decided to abandon its plans for a $1.25 billion battery manufacturing facility in Buckeye, Arizona, after listing the project site for sale in recent weeks. The Idaho-based battery cell developer confirmed that the 167,223-square-metre (1.8-million-square-foot) project, originally planned to produce lithium-ion technology for transportation and energy storage, will not proceed now.
The plant was expected to create 3000 jobs in the Phoenix Metropolitan area and was a central part of Kore Power’s growth strategy. The company had previously received strong support from local business groups, including the Buckeye Valley Chamber of Commerce, and planned to begin production this year.
However, delays, cost increases, and changing project timelines, alongside the recent listing of the site for sale, raised questions about the project’s viability.
Kore had hoped to secure $850 million in funding through a conditional loan agreement with the U.S. Department of Energy in 2023, but the funds never materialised. Additionally, a lien was filed by contractor Yates Construction for nearly $10.4 million for unpaid debts, further complicating the situation.
Moreover, in a LinkedIn post, the company’s founder and CEO, Lindsay Gorrill, announced his resignation from the CEO position, though he will remain on the board of directors. The leadership change comes as Kore Power seeks a new direction for the business. Jay Bellows has been appointed the new CEO to guide the company forward.
