KY: South Central Kentucky Announces Second Largest Economic Development Project in State’s History | Trade and Industry Development

KY: South Central Kentucky Announces Second Largest Economic Development Project in State’s History

Apr 14, 2022
Envision AESC announced a $2 billion investment to build a new, 3 million square foot, state-of-the-art gigafactory in Bowling Green. The 30GWh plant will create 2,000 new, skilled jobs.

Envision AESC, a world-leading Japanese electric vehicle battery technology company, along with Gov. Andy Beshear, announced its $2 billion investment to build a new, approximately 3 million square foot, state-of-the-art gigafactory in the Kentucky Transpark in Bowling Green, Warren County. The 30GWh plant will create 2,000 new, skilled jobs for the region, producing battery cells and modules to power the next generation EVs produced for multiple global automotive manufacturers. This project is not only the second-largest investment ever in Kentucky but also the largest in history for South Central Kentucky.

Governor Beshear, said: “We are thrilled that Envision – the world’s leading EV battery technology company – has picked Team Kentucky. Envision is making the second-largest economic development investment Kentucky has ever seen, investing $2 billion to build a new, state-of-the-art EV battery gigafactory in Bowling Green. Even better: This project will create 2,000 great jobs of the future for residents in the Warren County region. And with this investment Envision will generate a 30GWh site, which increases Kentucky’s production to 116GWh, making the commonwealth the nation’s top producer of electric vehicle batteries."

“I am so grateful for the work that was started years ago through Chamber initiatives like SCK LAUNCH to ensure that our future workforce is prepared to meet the community’s growing talent demands,” said Judge-Executive Mike Buchanon. “It’s this type of forward-thinking that attracts world-class companies like Envision AESC.”

The economic impact of this project will generate $20 billion over the next decade and will also support approximately 5,249 new jobs in the community beyond those who will be working at their facility. At full employment, this project will generate over $233 million in new spending in the community annually.

CEO of Envision AESC Group, Shoichi Matsumoto, said: “We are pleased to partner with Kentucky and Bowling Green as part of our next phase battery strategy to power next generation EVs in the U.S. This major investment builds on our commitment to the U.S. market, supports growth of the electrification supply chain, and secures high-value jobs for future generations in the region. This commitment takes us one step further towards our ambition to make high-performance, longer-range batteries for a diverse range of automotive manufacturers worldwide to support the EV transition.”

Envision AESC U.S. Managing Director, Jeff Deaton, said: “The new plant will produce batteries for a growing number of electric vehicle manufacturers and create 2,000 new high-value jobs in the region when at full capacity. The Bowling Green area has an outstanding automotive workforce today, as well as the future pipeline of talent needed, and we are excited to support this with new jobs in the high-growth electrification segment. The addition of this new facility will make Kentucky the new gigafactory capital of the United States, well-positioned to meet the forecasted growth of EVs and attract future investment.”

“The scale of this project is like nothing our community has ever seen before,” said Bowling Green Mayor Todd Alcott. “This announcement boasts the largest investment amount, jobs creation, and facility size in our history. It’s phenomenal for the future of our region!”

“Envision AESC is an innovative company doing amazing work worldwide, and we are ecstatic about their decision to locate in South Central Kentucky,” said Ron Bunch, President and CEO of the Bowling Green Area Chamber of Commerce. “The collaboration of our community leaders is imperative to landing projects of this magnitude, and we are fortunate to work with the best.”

The newly announced facility marks the next stage of growth for Envision AESC, a global player in world-leading battery technology and smart, digitalized, low-carbon battery plants. It will produce next-generation battery cells with 30% more energy density than the current generation, reduced charging time, and increased range and efficiency for EVs, powering up to 300,000 vehicles annually by 2027. 

These high-tech capabilities will increase the cost-competitiveness and technological expertise of EV battery production in Kentucky and the U.S., making electric vehicles more accessible and affordable for motorists. The gigafactory will also be powered by 100% renewable energy, supplied by onsite generation and supplied from the Tennessee Valley Authority (TVA) – ensuring the plant helps drive progress toward decarbonizing the state’s industrial sector. The investment by Envision AESC will generate a 30GWh site, which increases Kentucky’s statewide production to 116GWh, making the commonwealth the nation’s top producer of electric vehicle batteries.

Year to date, the Bowling Green Area Chamber of Commerce has closed two economic development projects in South Central Kentucky, totaling over $2 billion in capital investment. Site Selection Magazine has ranked Bowling Green as Top Six Tier 2 Metro for nine consecutive years including a Number One Ranking in 2018 and a second-place ranking this year. Additionally, Site Selection Magazine awarded the Bowling Green Area Chamber of Commerce the prestigious Mac Conway Award placing it in the top twenty economic development organizations in the United States for performance in 2020.