US battery startup EnerVenue has opened its first manufacturing plant in Changzhou, China, after abandoning an earlier plan to make Kentucky the site of its first factory.

The company is beginning mass production at the Changzhou facility as it scales nickel-hydrogen batteries derived from aerospace technology, Reuters reported.

Manufacturing ecosystem shaped the location decision

EnerVenue Chief Executive Henning Rath told Reuters that engineering capability, supplier density and the manufacturing ecosystem around Changzhou drove the location decision. The plant cost between $20 million and $50 million, is about 95 percent automated and is expected to employ roughly 400 people by year-end.

The company has raised more than $300 million and continues to maintain research and development operations in California. Its batteries are aimed at stationary energy storage applications.

China remains difficult to displace in battery manufacturing

The decision illustrates the difficulty of matching the depth of China’s battery and industrial manufacturing clusters through incentives alone. EnerVenue still sees possible future production in North America, the Middle East and Europe from 2028, depending on demand and regulatory conditions.

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