Project is Kentucky’s largest investment of 2024, largest investment and jobs announcement on record in Shelby County 

FRANKFORT, KY - On Nov. 15, 2024, Gov. Andy Beshear was joined by local leaders 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 nearly $712 million project creating 1,572 skilled, high-tech jobs represents the third-largest project for job creation during the administration and the fourth-largest investment.

“I want to thank Shelbyville Battery Manufacturing for their investment in Kentucky and the Shelbyville community,” said Gov. Beshear. “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. Shelbyville Battery Manufacturing will support e-Storage’s rapidly growing U.S. energy storage business and deliver American-made energy storage solutions to customers throughout the United States.

Production at the Shelbyville plant is expected to begin by the end of 2025.

The investment adds to Kentucky’s significant growth in battery-related production. Since the start of the administration, Gov. Beshear has announced projects across every phase of the electric vehicle lifecycle, from production of batteries and their components to recycling. The addition of utility-scale energy storage production represents further investment in emerging technologies and diversification of Kentucky’s battery-related industries.

“We are proud to be a part of the growing energy technology transformation across the U.S., and we are thrilled to announce our investment in a new, state-of-the-art industrial battery cell, module and packaging plant in Shelbyville, Kentucky that will employ over 1,500 Kentuckians,” said Colin Parkin, president of e-Storage. “This new plant will allow us to provide our U.S. customers with cutting-edge, American-made battery energy storage products.”

e-Storage, based in Ontario, Canada, is a subsidiary of Canadian Solar, a worldwide leader in the design, manufacture and integration of battery energy storage systems for utility-scale applications.

Senate President Robert Stivers noted the collaboration that has resulted in Kentucky’s recent economic success: “This is a special day in Kentucky as we celebrate another major investment in our people and our workforce. The General Assembly has worked to foster a pro-business environment in Kentucky, making us an attractive destination for global companies. We’ll continue this work, alongside Gov. Beshear, to keep bringing opportunity to our citizens.”

Shelby County Judge/Executive Dan Ison said this is a game-changing project for Kentucky: “Today is a great day for the people of Shelby County, and for the Commonwealth of Kentucky. Today, we’re taking a major step toward a brighter future for our community. We’re showing that in Kentucky, when we work together for our citizens, we can achieve amazing things.”

Shelbyville Mayor H. 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.”

Shelby County Industrial and Development Foundation President and CEO Ray Leathers mentioned the impact of the project: “Shelby County Industrial & Development Foundation is proud and excited to welcome Shelbyville Battery Manufacturing to our community, becoming our largest industrial employer ever! Shelbyville Battery Manufacturing has unquestionably established Shelby County, along with our 84 other industries, as a national commerce center at the crossroads of America.”

The president and CEO of Shelby Energy, Jack Bragg, said the project will have a major impact on the region: “We are so excited to welcome Shelbyville Battery Manufacturing into our Shelby Energy and Kentucky’s Touchstone Energy Cooperatives family. From the company’s initial visits to Shelbyville, we knew right away that the synergies and timings associated with the project were aligning to help bring this transformational project to fruition in Shelby County.”

Shelbyville Battery Manufacturing’s investment and job creation build on the best four-year period for economic growth in state history.

Since the beginning of his administration, Gov. Beshear has announced more than 1,000 private-sector new-location and expansion projects totaling nearly $34 billion in announced investments, creating roughly 57,500 jobs. This is the highest investment figure secured during the tenure of any governor in the commonwealth’s history.

The robust job creation has been accompanied by rising wages across the commonwealth. The average incentivized hourly wage in 2022 and 2023 topped $26 in consecutive years for the first time.

Gov. Beshear has announced some of the largest economic development projects in state history, which have solidified Kentucky as the electric vehicle battery production capital of the United States: Ford Motor Co. and SK On’s transformative $5.8 billion, 5,000-job BlueOval SK Battery Park in Hardin County; AESC’s $2 billion, 2,000-job gigafactory project in Warren County; Toyota’s $1.3 billion investment in Scott County; and INFAC North America’s $53 million investment in Taylor County, among others.

The Governor’s administration also secured the largest General Fund budget surplus and Rainy Day Fund, as well as the most jobs filled in state history. Last year, Kentucky set the record for the longest period with the lowest unemployment rates in state history.

Kentucky also secured rating increases from major credit rating agencies Fitch Ratings, S&P Global Ratings and Moody’s Investors Service.

In March, Site Selection ranked Kentucky third nationally and first in the South Central region for economic development projects per capita in its 2023 Governor’s Cup rankings. In April, Site Selection placed Kentucky second in the South Central region and in the top 10 nationally in its 2024 Prosperity Cup ranking, which recognizes state-level economic development agencies for their success in landing capital investment projects.

Gov. Beshear announced a Supply Kentucky initiative with the goal of boosting job growth, reducing costs and enhancing supply chain security for Kentucky companies. And this month, the Governor announced a new initiative, called New Kentucky Home, an initiative to increase economic investment, attain and attract talent and increase tourism across the state.

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 Kentucky-resident, full-time jobs 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.

For more information on e-Storage, visit csestorage.com.

A detailed community profile for Shelby County can be viewed here.

Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.