Governor Andy Beshear was joined Friday by local officials and executives from Shelbyville Battery Manufacturing, a subsidiary of e-Storage, to announce the largest economic development project in Shelby County’s history and the largest jobs announcement in the commonwealth in more than two years.
The battery plant is a nearly $712 million project creating 1,572 high-tech jobs.
“I want to thank Shelbyville Battery Manufacturing for their investment in Kentucky and the Shelbyville community,” Beshear said in a news release. “This is the single largest investment and job creation announcement we have on record for Shelby County, and it is the largest project Kentucky has seen this year. This project will solidify our role as a leader in the country’s energy storage sector and will transform our economy, creating opportunities for Kentucky families for generations.”
The project will establish a state-of-the-art, 6-gigawatt-hour battery cell, module, and packaging manufacturing facility in a 1 million-square-foot building located on Logistics Drive in Shelbyville. These self-contained energy storage systems will be packaged into modular, containerized utility-scale batteries.
Production at the Shelbyville plant is expected to begin by the end of 2025.
Shelbyville Mayor Troy Ethington welcomed the company to the area. “We’re excited to welcome Shelbyville Battery Manufacturing to our community. This new venture marks a significant step in strengthening our local economy and creating high-quality jobs for our residents. Shelbyville continues to grow as a hub for innovation, and we’re proud to support industries that prioritize sustainability and technological advancement. We look forward to the positive impact Shelbyville Battery Manufacturing will bring to our city and commonwealth for years to come,” Ethington said.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in August preliminarily approved a 15-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $35 million in tax incentives based on the company’s investment of $711.9 million and annual targets of:
- Creation and maintenance of 1,572 full-time jobs for Kentucky residents across 15 years, and
- Payment of an average hourly wage of $25.34, including benefits across those jobs.
Additionally, KEDFA approved the company for up to $5 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development, and electronic processing.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, the company can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training, and job-training incentives.
