South Carolina is a hub for clean energy manufacturing. In fact, manufacturing announcements have been ramping up over the past several years, particularly since the passage of 2021’s Bipartisan Infrastructure Law and 2022’s Inflation Reduction Act.
In April 2023, electric mobility solutions company BorgWarner announced that it would be investing $42.7 million to expand its production facility in Seneca, South Carolina. It had been operating there since 1996, making transfer cases for internal combustion engine power trains, but it sustained severe damage from a tornado in 2020. With this investment, the company hopes to scale up its North American manufacturing operations for electric vehicle (EV) battery systems. This will help it meet the goals outlined in its “Charging Forward” initiative, such as growing its EV-related revenue from 3% of total revenue at the time of its launch to 45% by 2030.
Photo Courtesy BorgWarner
Following the completion of the building and equipment upgrades and the new manufacturing lines last year, the plant began to produce 3GWh of battery module capacity per year. By 2026, it is expected to create 122 additional jobs, which will span production, technical support, manufacturing, engineering, maintenance, and supporting functions.
The company extended its gratitude to both Oconee County and the State of South Carolina for their assistance in pushing the project forward. In his press release, Gov. Henry McMaster noted that “BorgWarner’s expansion gives further evidence of South Carolina’s talented and dedicated workforce. Congratulations to BorgWarner, and we are proud to continue to support their growth in South Carolina.”
Photo Courtesy BorgWarner
Meanwhile, in 2022, down in the Lowcountry, Kontrolmatik Technologies’ subsidiary Pomega Energy Storage Technologies announced that it would invest $279 million to construct a 500,000-square-foot lithium-ion battery facility in Colleton County, South Carolina, which was later adjusted to reach 650,000 square feet.
Gov. McMaster expressed in a press release that “Pomega Energy Storage Technologies will offer industry-leading energy storage solutions for the nation, produced locally in South Carolina’s Lowcountry. The company’s commitment to our state and our people is a testament to South Carolina’s workforce solutions for advanced, high-tech talent.” In fact, the facility was estimated to create 575 new jobs, with the company eyeing vocational training programs at community colleges in the state to recruit skilled workers. The company also received more than $127 million in incentives from the state and county. In February 2023, Pomega hosted the groundbreaking ceremony at which Gov. Henry McMaster was the guest of honor.
Photo Courtesy Pomega Energy Storage Technologies- USA
Once production begins, the company will begin churning out lithium iron phosphate cells to be used for grid-scale energy storage projects in North America. Beyond cells, the facility will make and assemble turnkey battery energy storage systems, ranging from the modules and cabinets to the final products. The initial capacity is 3 gigawatt-hours (GWh), with future plans to expand to 6 GWh. Although Kontrolmatik was looking for a U.S. location before the passage of the IRA, Bahadir Yetki, CEO-USA for Kontrolmatik and Pomega, told POWER Magazine that “The IRA pushed us to increase the size of our project (from 3 GWh to 6 GWh).”
With this facility, Pomega claimed to have become “one of the first and only U.S. manufacturers of lithium-ion batteries dedicated exclusively to the domestic utility-scale energy storage market.”
Not only is the facility addressing local employment and energy needs, it is also contributing to a “greener future,” Yetki noted. In addition to producing clean energy storage products, the facility itself will be green, “equipped with solar panels, rainwater collection and exhaust heat recovery systems as well.”
Last summer, Kontrolmatik and Pomega also announced a global ‘Engineering and Solution Alliance’ with Siemens, which is set to be featured at the South Carolina facility. Plus, the partners are working with the University of South Carolina on education and workforce development. Such collaborations with local institutions will no doubt benefit the area’s residents and economy as well as add to the facility’s success.
