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China-Based Green New Energy Materials Plans Denver, North Carolina, Battery Component Operations

05/06/2024
China-based Green New Energy Materials, Inc., a manufacturer of a key component used in lithium-ion batteries, plans to establish its first U.S. manufacturing operation in Denver, North Carolina. The $140 million is expected to create 545 jobs.

The new Lincoln County facility will manufacture battery separator components to supply customers across North America.

“We would like to thank the strong and unwavering support from the State of North Carolina and Lincoln County for our project. The United States has always been a key component of GNEM’s strategic plan of establishing clean energy supply chains worldwide. Today, we are bringing technologies refined for decades to the center of clean energy transformation, to the Old North State (North Carolina),” said Jay Zhu, General Manager for Green New Energy Materials. “GNEM will establish a state-of-the-art manufacturing base and create more than 500 futureproof jobs. Through their close cooperation, the State of North Carolina and GNEM will continue to grow and solidify their leadership in building resilient and secured clean energy supply chain, and super charge the green transition in North America and across the planet.”

The project will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $1.15 billion. Using a formula that takes into account the new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $3,634,500 spread over 12 years. State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.

“North Carolina’s investments to strengthen our education and workforce training programs continue to pay dividends,” noted North Carolina Commerce Secretary Machelle Baker Sanders. “Companies in forward-leaning industries like clean energy know they can partner with the state to develop the skilled workforce they need to succeed in today’s dynamic economy.”

The project’s projected return on investment of public dollars is 105 percent, meaning for every dollar of potential cost to the state, the state receives $2.05 in state revenue, according to state officials. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.

Because GNEM chose a site in Lincoln County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving $1,211,500 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Lincoln, the new tax revenue generated through JDIG grants helps more economically challenged communities elsewhere in the state.

“Green New Energy Materials’ decision to build its newest lithium-ion battery separator manufacturing facility in North Carolina is another example of North Carolina being a great fit for companies in the EV battery industry,” added Christopher Chung, CEO of the Economic Development Partnership of North Carolina (EDPNC). “With the largest manufacturing workforce in the Southeast and an East Coast location offering easy access to supply chains and customers, Green New Energy Materials are sure to thrive here.”

Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina (EDPNC) on this project were the North Carolina General Assembly, the North Carolina Community College System, Duke Energy, Commerce’s Division of Workforce Solutions, Lincoln County, and the Lincoln Economic Development Association.

Green New Energy Materials specializes in research and development, manufacturing, and sales of these important battery components, widely used in electric vehicles, energy storage, electric tools, and other industrial applications. The company’s strategic partners include LG, Samsung, SKI, AESC and Northvolt.

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