Posted Feb 3, 2025, 4:43 PM
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KORE Power CEO resigns, company nixes plans for $1 billion Arizona project
WOW...
https://www.bizjournals.com/phoenix/news...ien-land-sale-ceo-resign-buckeye-az.html
Quote:
KORE Power Inc.'s CEO is stepping down and the company has confirmed it will no longer build its proposed $1 billion battery manufacturing plant in the West Valley.
The moves come as rumors have swirled in recent weeks about the state of the project.
KORE Power has listed its 215-acre property in Buckeye for sale on LoopNet after trying to sell the land off the market and telling investors in recent days that it would no longer build battery manufacturing operations in Arizona, according to sources with knowledge of the company's plans.
On Jan. 31, a statement provided to the Business Journal by KORE Power said that it continues to grow its business and manufacture American-made energy storage systems at its facility in Waterbury, Vermont, and that it has recently undertaken a restructuring to provide more benefit to its customers while positioning the company for long-term success.
"Plans for the KOREPlex in Buckeye, Arizona will not move forward at this time," the statement said. "While KORE is selling the proposed greenfield project site, the company has been exploring other opportunities to expand its domestic manufacturing that have led to this pivot."
The company added that it wants to "thank everyone" in Buckeye, Maricopa County and Arizona who "welcomed KORE and supported the company through this process. KORE believes a strong market remains across the nation for battery cells and modules manufactured in America by an American company."
The sale listing for KORE's property, which was first reported by AZBEX, at State Route 85 and Baseline Road has been posted as the B85 Technology Park by a JLL team comprising Anthony Lydon, Chuck Rosien, Marc Hertzberg, John Lydon and Joan McCarthy. KORE acquired the property in 2022 for $29 million.
Just before the property was listed, the general contractor on the project, Yates Construction, filed a notice of lien in Maricopa County this month related to $10 million in site work it completed for KORE Power's project in September 2024. Yates Construction could not immediately be reached for comment.
CEO of KORE Power resigns
In another update, the Coeur d'Alene, Idaho-based company's founder and CEO of seven years, Lindsay Gorrill, has also announced to KORE employees and investors that he will be stepping down from his role effective Feb. 1, 2025.
Jay Bellows, the company's president, will replace Gorrill as the next chief executive, according to a statement from KORE Power provided to the Business Journal. He has more than 20 years of executive experience in the tech industry and was previously president of Northern Reliability before it was acquired by KORE Power in 2021.
Gorrill will remain on KORE's board of directors and said in an email to shareholders that he will support the team in strategic initiatives including a "new vision for KOREPlex."
The KOREPlex project was lauded as a big win for Buckeye and Arizona when it was announced in July 2021 following a two-year search for a factory site. KORE promised the city it would create 3,000 high-paying technology jobs and 700 construction jobs with plans to start production by late 2024 or early 2025. KORE Power, which was founded in 2018, touted its project as the first lithium-ion battery manufacturing facility owned by a U.S. company. Most of the world’s lithium-ion battery cells are produced in Asia, where KORE Power's batteries are currently manufactured.
Startup battery makers in the U.S. have faced setbacks over the past year amid challenges in financing and market demand, as well as uncertainty surrounding the Trump Administration's approach to green technology and government spending.
KORE Power made little progress over the past four years as it worked to secure construction financing and planning approvals for its 2 million-square-foot project, while continuing to push back its construction start date. Last year, however, it took significant steps toward construction by securing site plan approvals and a loan commitment for $850 million from the U.S. Department of Energy.
KORE had also previously expected to receive $150 million in financing from lead investor Siemens Financial Services as well as Quanta Services, Nidec Motor Corp., Honeywell Ventures, Trog Hawley Capital and others who could have been customers for KORE in Buckeye.
Site work has been ongoing on the property but Buckeye has not issued building permits for vertical construction, according to a spokesperson for the city.
When asked about KORE Power's plans in the city, a Buckeye spokesperson said on Jan. 31 that at this time "we have not received direct communication from KORE Power regarding their business decisions in Buckeye. Until we do, we are unable to provide an update on their plans."
The Greater Phoenix Economic Council declined to comment. The Arizona Commerce Authority did not immediately respond to a request for comment.
On the other side of the Valley, South Korea technology giant LG Energy Solution has made progress on construction for its first battery manufacturing plant for electric vehicles in Queen Creek and recently signed an agreement to supply batteries to electric vehicle maker Rivian.
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as usual) Went to a show at Gammage a couple years ago and it could use some love.
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