American Battery Factory Secures Major Offtake Agreements to Support Development of Tucson Gigafactory
American Battery Factory Inc. (ABF), an emerging U.S. battery manufacturer focused on building a domestic network of lithium iron phosphate (LFP) battery cell gigafactories, has announced a significant milestone in its development plans. The company revealed that it has secured long-term offtake agreements with several A-rated energy storage solution (ESS) companies, covering more than 4.5 gigawatt-hours (GWh) of production from its first manufacturing facility. The agreements account for the majority of the plant’s initial planned output of approximately 5.5 GWh annually and will extend through at least the first five years of operation.
The newly announced contracts represent an important step for the company as it moves forward with plans to establish large-scale domestic battery manufacturing capacity in the United States. By locking in substantial demand for its initial production, ABF has strengthened its financial outlook and created a pathway toward securing the remaining funding required to begin construction and equipment installation for its planned factory in Tucson, Arizona.
Financing and Construction Plans Move Forward
According to ABF, the offtake agreements provide the financial certainty needed to finalize plant financing within the next three to four months. The financing will support construction of the advanced battery production facility as well as the acquisition of specialized automation equipment required for high-volume cell manufacturing.
Battery cell production is a highly technical and capital-intensive process, and ABF’s planned facility will rely on a fully automated manufacturing line designed to produce large-format 314 amp-hour (Ah) lithium iron phosphate cells. Automation will play a critical role in improving production efficiency, ensuring consistent product quality, and lowering manufacturing costs.
The company believes the advanced production line will help it compete with global battery manufacturers while establishing a scalable platform for expanding capacity in future development phases. Once the initial facility is operational, ABF intends to gradually increase output and potentially replicate the manufacturing model at additional sites across the United States.
The Tucson facility represents the first major step in the company’s broader strategy to build a network of LFP battery gigafactories capable of supporting America’s rapidly expanding clean energy and energy storage sectors.
Advisory Support for Project Development
ABF has engaged two prominent advisory firms to assist with the project’s financial and real estate planning. Investment bank Cantor Fitzgerald is advising the company on capital formation and financing strategies, helping to secure the funding required to move the project into construction.
Meanwhile, Newmark is providing strategic real estate and project advisory services. Its role includes assisting with site planning, development strategy, and other aspects of large-scale industrial project execution.
The project’s planning and development process has also benefited from ABF’s international production experience through its affiliated operations in Asia, known as ABF-Asia. Insights from those operations are expected to inform manufacturing practices and operational strategies at the new U.S. facility.
Based on the current project timeline, construction and installation of production equipment will lead to initial manufacturing operations beginning in late 2027. The plant is expected to reach its full initial production capacity in 2028.
Strengthening Domestic Battery Supply Chains
For ABF leadership, the offtake agreements are about more than securing revenue streams—they also represent progress toward strengthening the United States’ domestic battery supply chain.
“Securing these offtake agreements brings us closer to our primary objective of building a resilient domestic supply chain and accelerating the growth of America’s clean energy economy,” said Jim Ge, Chief Executive Officer of American Battery Factory.
As global demand for battery storage continues to surge—driven by renewable energy deployment, grid modernization, and electrification trends—the United States has been working to expand domestic manufacturing capacity. Historically, much of the world’s battery production has been concentrated in Asia, creating supply chain vulnerabilities for U.S. industries.
ABF aims to help address this imbalance by manufacturing lithium iron phosphate battery cells domestically, reducing reliance on imports while supporting American energy infrastructure and manufacturing jobs.
Facility Design and Research Capabilities
The planned Tucson complex will be more than a conventional battery manufacturing plant. In addition to production lines, the facility will house ABF’s corporate headquarters and a research and development center designed to support innovation in battery technology.
The site will include a dedicated 0.5 GWh research and development foundry and innovation center where engineers and scientists can develop and test new battery designs, manufacturing techniques, and materials.
Alongside the research center, the main production lines will have an initial manufacturing capacity of approximately 5 GWh. The production lines themselves will stretch nearly 500 yards in length, reflecting the scale and complexity of modern battery manufacturing systems.
The lithium iron phosphate cells produced at the facility will feature prismatic designs intended for energy storage systems used in grid applications, renewable energy integration, and other stationary storage solutions.
Advantages of LFP Battery Technology
Lithium iron phosphate chemistry has become increasingly popular in recent years due to its combination of safety, longevity, and environmental advantages compared to some other lithium-based battery chemistries.
LFP batteries are known for their strong thermal stability and reduced risk of overheating, making them particularly suitable for large-scale energy storage installations. They also avoid the use of certain materials such as cobalt and nickel, which can pose supply chain and sustainability challenges.
According to ABF, the battery cells produced at the Tucson facility will deliver long operational lifetimes, capable of achieving up to 10,000 charge and discharge cycles. In practical terms, this could translate into operational lifespans exceeding 20 years, making them well suited for long-duration energy storage and infrastructure projects.
The combination of durability, safety, and environmental compatibility is expected to make LFP batteries an important technology for the expanding renewable energy sector.
Regional Economic Impact
Local officials in Arizona have welcomed the project as a major investment in the region’s economic development and advanced manufacturing capabilities.
“Heath Vescovi-Chiordi, Pima County’s Economic Development Director, said ABF’s announcement represents a crucial milestone toward bringing the facility into operation.”
“ABF securing these offtake agreements is a critical step toward becoming operational here in Pima County,” Vescovi-Chiordi said. “We are excited to continue working with the company on their development plans and look forward to seeing construction begin on this important facility.”
The project is expected to create significant economic activity in the region, including construction jobs during the development phase and long-term employment opportunities once the facility begins operations.
Large battery manufacturing plants typically require a wide range of skilled workers, including engineers, technicians, quality specialists, and manufacturing operators. The presence of a research and development center will also contribute to innovation and workforce development in advanced energy technologies.
Strategic Industry Partnerships
In addition to securing offtake agreements, ABF has been building an extensive network of technology and supply chain partners to support its manufacturing ecosystem.
The company previously announced partnerships with several organizations across the battery value chain. These include Wuxi-LEAD, which provides advanced manufacturing equipment, and Honeywell, which contributes digital platforms and industrial technology solutions.
Other partners include Advanced Energy Materials, First Phosphate, Anovion, Celgard, FNA Group, Microporous, Lion Energy, and Aqua Metals. Together, these companies provide critical inputs and capabilities ranging from lithium sourcing and anode materials to separators, battery pack integration, and recycling technologies.
By assembling a network of partners across multiple segments of the battery ecosystem, ABF aims to ensure a reliable supply of materials and technologies needed to support large-scale manufacturing.
Accelerating the U.S. Energy Transition
For ABF leadership, the Tucson gigafactory represents a major step toward achieving the company’s broader strategic vision: becoming a leading domestic manufacturer of lithium iron phosphate prismatic battery cells.
“John Kem, President of American Battery Factory, said the newly signed agreements will accelerate the full build-out of the company’s Pima County facility and support its broader mission.”
“These offtake agreements enable the rapid acceleration of our Tucson factory project and support our long-term goal of becoming the premier U.S.-based manufacturer of LFP prismatic battery cells,” Kem said. “Our efforts are focused on powering a historic transformation in America’s energy infrastructure.”
As renewable energy deployment accelerates and electricity demand rises due to electrification and data-center growth, the need for reliable energy storage systems continues to expand.
By developing domestic manufacturing capacity for long-lasting, safe, and cost-effective battery cells, ABF hopes to play a meaningful role in supporting the next generation of energy infrastructure in the United States.
If successful, the Tucson facility could serve as a foundation for additional gigafactories and help establish a more resilient and competitive American battery manufacturing industry.
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