Lion Energy is moving to lock in American-made batteries, taking a strategic stake in American Battery Factory and securing a pipeline of U.S.-produced prismatic lithium-iron-phosphate (LFP) cells for its energy-storage systems. The deal ties Lion to ABF’s planned Tucson gigafactory, which the companies say already has more than 4.5 GWh of initial offtake lined up, and lands just as Lion’s new U.S. assembly lines are scheduled to start up in June, according to Business Wire.
In its announcement, Lion said the alliance will allow it to fold domestically produced LFP cells into its LionESS hardware and software stack as supply comes online. The company added that its assembled systems are intended to meet Foreign Entity of Concern (FEOC) and domestic-content rules that steer incentives toward U.S.-centric supply chains, Business Wire reports. CEO Tyler Hortin said in the release that “our strategic partnership and equity position in ABF reflect our confidence in their vision,” signaling Lion is not treating this as a casual sourcing arrangement.
What The Tucson Gigafactory Means
American Battery Factory has picked a 267-acre Aerospace Research Campus site in Pima County for its flagship plant and held a public groundbreaking there in October 2023, according to PR Newswire. Since then, the company has announced offtake agreements covering more than 4.5 GWh of the factory’s initial output, a milestone Batteries News notes is key to closing plant financing.
The Tucson build is pitched as a large-scale LFP hub, and having early customers effectively call dibs on a big chunk of production helps ABF show lenders this is not a speculative science project. For Lion, being part of that early offtake mix could mean a steadier lane for cell supply once the factory is up and running.
Regulatory Push And Production Timing
Tightening FEOC and domestic-content rules are driving a wave of onshoring deals, and pv magazine USA reports that those policy levers are shaping how partners like Lion and ABF pair up. The outlet also notes that Lion plans to bring new U.S. assembly lines online in June, positioning the company to accept ABF cells once they are available and to deliver systems that aim to qualify under evolving domestic-content tests…