Lion Energy Strengthens U.S. Battery Supply Chain Through Strategic Partnership With American Battery Factory
Lion Energy, a leading provider of advanced energy storage systems and power management solutions, has announced a strategic partnership with American Battery Factory (ABF), a U.S.-based manufacturer specializing in lithium iron phosphate (LFP) battery cells. The collaboration marks an important step in expanding domestic battery manufacturing capabilities in the United States and reinforcing Lion Energy’s role as a key participant in the growing U.S. battery supply chain.
American Battery Factory is currently developing one of the first networks of large-scale domestic gigafactories dedicated to manufacturing LFP battery cells. Through this partnership, Lion Energy will support the advancement of domestic battery production while aligning with ABF’s recently announced offtake agreements for its planned LFP battery cell gigafactory in Tucson, Arizona. The project represents a major milestone in strengthening domestic battery production capacity at a time when demand for reliable and secure energy storage solutions continues to grow.
The agreements associated with the Tucson facility have secured more than 4.5 gigawatt-hours (GWh) of initial production capacity. This early demand highlights the market’s strong interest in domestically manufactured battery cells and demonstrates confidence in the viability of U.S.-based manufacturing for next-generation energy storage technologies. As part of the partnership, Lion Energy has taken an equity position in American Battery Factory, aligning the two companies in their shared goal of advancing U.S.-produced LFP battery technology and accelerating its commercialization.
The partnership is particularly significant in light of the recently announced acquisition of Lion Energy by Aqua Metals. Aqua Metals, a company known for its sustainable lithium battery recycling technology, plans to acquire Lion Energy as part of its broader strategy to build a vertically integrated battery ecosystem in the United States. Once completed, the transaction is expected to bring together several key elements of the battery value chain, including advanced cell manufacturing, deployment of energy storage systems, intelligent energy management technologies, and end-of-life battery recycling.
Together, these capabilities could create a comprehensive domestic battery infrastructure designed to reduce reliance on international supply chains while promoting sustainability and innovation across the lifecycle of battery technologies.
Tyler Hortin, Chief Executive Officer of Lion Energy, emphasized the strategic importance of the partnership with American Battery Factory. According to Hortin, the growing demand for domestically produced battery components highlights the need for a fully integrated and resilient battery supply chain within the United States.
He noted that the company’s investment and partnership with ABF demonstrate Lion Energy’s confidence in ABF’s vision for domestic battery production. By working closely together, the companies aim to bring American-made battery technology to market at scale and strengthen the country’s ability to support critical energy infrastructure with locally produced components.
Meanwhile, Aqua Metals CEO Steve Cotton highlighted the strategic value of the relationship between Lion Energy and American Battery Factory as Aqua Metals moves forward with its planned acquisition of Lion Energy. Cotton explained that ABF’s success in securing more than 4.5 GWh of offtake agreements illustrates the rapidly accelerating demand for domestically produced battery cells.
He added that Lion Energy’s equity position and partnership with ABF will enable Aqua Metals to participate in the growth of domestic battery manufacturing while also expanding its presence across the entire battery lifecycle. The combined platform is expected to support everything from domestic battery cell production and deployment of intelligent energy storage systems to sustainable recycling solutions that recover valuable materials at the end of a battery’s useful life.
Lion Energy plays a crucial role in the integration and deployment of battery systems across multiple sectors. The company designs and delivers advanced energy storage systems that can be used in residential, commercial, and industrial applications. Through its expertise in system integration, Lion Energy is well positioned to support the widespread adoption of domestically manufactured battery cells once production from ABF’s gigafactory begins.
In addition to supporting battery cell integration, Lion Energy is also expanding its own U.S.-based battery assembly capabilities. The company has announced plans to launch new production lines that are expected to begin operating in June of this year. These new facilities will assemble energy storage systems designed to meet regulatory requirements related to Foreign Entity of Concern (FEOC) restrictions and domestic content standards.
By ensuring compliance with these requirements, Lion Energy will be able to provide energy storage solutions that align with U.S. policy priorities aimed at strengthening domestic supply chains. At the same time, the company is preparing to incorporate domestically produced battery cells from American Battery Factory into its products as those cells become available.
Brady Hoggan, Chief Revenue Officer of Lion Energy, explained that the company’s long-term strategy focuses on building a comprehensive platform capable of delivering scalable and secure energy solutions. By combining system integration expertise with manufacturing expansion and lifecycle management capabilities, Lion Energy aims to address the growing demand for energy storage solutions that are both reliable and domestically controlled.
This integrated approach allows the company to deliver greater value to customers while supporting the broader transition toward secure and resilient energy infrastructure.
American Battery Factory’s planned facility in Tucson, Arizona will produce advanced prismatic LFP battery cells designed to deliver strong safety performance, long operational lifespans, and high efficiency. Lithium iron phosphate chemistry is widely recognized for its stability and durability, making it well suited for a wide range of applications including stationary energy storage, electric mobility, and grid-scale storage systems.
The cells produced at the Tucson gigafactory are expected to integrate seamlessly with Lion Energy’s proprietary technologies, including its hardware platforms, firmware architecture, and the LionESS™ energy management system. This combination of domestically manufactured battery cells and advanced system integration technology will help create secure and efficient energy storage solutions that can support the evolving needs of modern energy systems.
Energy storage demand is increasing rapidly across a variety of sectors. Residential customers are seeking backup power solutions to improve energy resilience during outages. Commercial and industrial organizations are investing in storage systems to manage energy costs and enhance operational reliability. Meanwhile, the rapid expansion of artificial intelligence data centers and digital infrastructure is creating new demand for large-scale energy storage systems capable of supporting high power requirements.
Grid operators and utilities are also increasingly deploying energy storage technologies to balance renewable energy generation and maintain grid stability. As solar and wind power installations continue to expand, battery storage plays a critical role in storing excess electricity and delivering it when needed.
Lion Energy’s strategic partnership with American Battery Factory positions both companies to capitalize on these emerging opportunities. By combining domestic battery manufacturing with advanced system integration and lifecycle management capabilities, the partnership supports the development of a more resilient and self-sufficient U.S. energy ecosystem.
The collaboration also aligns with broader national priorities aimed at strengthening domestic manufacturing, enhancing energy security, and promoting sustainable technology development. By building infrastructure that supports every stage of the battery lifecycle—from cell production to deployment and recycling—the companies aim to contribute to a more sustainable and independent energy future.
As the energy transition continues to accelerate, partnerships such as the one between Lion Energy and American Battery Factory are expected to play an increasingly important role in shaping the next generation of energy infrastructure. Through strategic investment, technological innovation, and a focus on domestic supply chain development, the companies are helping lay the foundation for a stronger and more resilient battery industry in the United States.
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