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EnerSys Completes Negotiation of U.S. DOE Award Supporting Development of Lithium-ion Gigafactory

1. EnerSys secures $199 million DOE funding for a lithium-ion facility. 2. The new factory will produce cells for commercial and defense sectors. 3. Construction starts in 2025; production expected to begin in 2028. 4. The facility strengthens U.S. battery supply chain for critical needs. 5. This marks a significant investment in U.S. energy independence initiatives.

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FAQ

Why Bullish?

The substantial funding and planned factory position EnerSys well for growth, similar to how investments led to stock increases in peers like Tesla after securing government contracts.

How important is it?

The funding and project signify strong future growth and alignment with national strategies, impacting investor confidence.

Why Long Term?

The long construction timeline suggests enduring impact, akin to similar industrial projects that eventually yield revenue streams.

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TSLAAAPLDOD
READING, Pa.,--(BUSINESS WIRE)--EnerSys (NYSE: ENS), a global leader in stored energy solutions for industrial applications, today announced the successful completion of contract and funding negotiations with the U.S. Department of Energy (DOE). This final agreement secures a $199 million award from the DOE’s Office of Manufacturing and Energy Supply Chains, which will support the construction of EnerSys’ state-of-the-art lithium-ion cell production facility in Greenville, South Carolina. The Greenville facility will span 500,000 square feet and is set to produce advanced lithium-ion cells for critical applications across commercial, industrial, and defense end markets. The factory will be dedicated to manufacturing cells exclusively for EnerSys products, advancing the Company’s ambitions of shaping the future of energy storage and strengthening the U.S. energy supply chain. The new factory will support the needs of critical customers including the U.S. Department of Defense (DOD), which has specific requirements for domestically sourced batteries. The Company intends to begin construction of the facility in 2025, with commercial production expected to commence in 2028. This announcement follows the Company’s September 20, 2024, announcement regarding its selection for the DOE award negotiation. Details about the Company’s gigafactory development plans and lithium-ion technology roadmap were provided during a “Technology Talk” webcast on September 30, 2024. The webcast archived replay is available on the Company’s Technology Talk website and in the Investor Relations section of the EnerSys website under Events and Presentations. About EnerSys EnerSys is a global leader in stored energy solutions for industrial applications and designs, manufactures, and distributes energy systems solutions and motive power batteries, specialty batteries, battery chargers, power equipment, battery accessories and outdoor equipment enclosure solutions to customers worldwide. The company goes to market through four lines of business: Energy Systems, Motive Power, Specialty and New Ventures. Energy Systems, which combine power conversion, power distribution, energy storage, and enclosures, are used in the telecommunication, broadband and utility industries, uninterruptible power supplies, and numerous applications requiring stored energy solutions. Motive power batteries and chargers are utilized in electric forklift trucks and other industrial electric powered vehicles. Specialty batteries are used in aerospace and defense applications, portable power solutions for soldiers in the field, large over-the-road trucks, premium automotive, medical and security systems applications. New Ventures provides energy storage and management systems for various applications including demand charge reduction, utility back-up power, and dynamic fast charging for electric vehicles. EnerSys also provides aftermarket and customer support services to its customers in over 100 countries through its sales and manufacturing locations around the world. To learn more about EnerSys please visit https://www.enersys.com/en/ Sustainability Sustainability at EnerSys is about more than just the benefits and impacts of our products. Our commitment to sustainability encompasses many important environmental, social and governance issues. Sustainability is a fundamental part of how we manage our own operations. Minimizing our environmental footprint is a priority. Sustainability is our commitment to our employees, our customers and the communities we serve. Our products facilitate positive environmental, social and economic impacts around the world. To learn more visit: www.enersys.com/en/about-us/sustainability. Caution Concerning Forward-Looking Statements This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that are not historical facts, including statements identified by words such as “believe,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “will,” and similar expressions. All statements addressing operating performance, events or developments that EnerSys expects or anticipates will occur in the future, including statements relating to the level of investment, the number of jobs created, the likelihood of obtaining or satisfying the remaining conditions to completing the investment and gigafactory, the timing of construction and operations of the gigafactory, the amount and timing of grants, and the benefits from developing and operating such gigafactory, are forward-looking statements. The forward-looking statements are based on management’s current views and assumptions regarding future events and operating performance and are inherently subject to risks and uncertainties. The statements in this press release are made as of the date of this press release. EnerSys does not undertake any obligation to update or revise these statements to reflect events or circumstances occurring after the date of this press release. The foregoing factors, among others, could cause actual results to differ materially from those described in these forward-looking statements. For a list of other factors which could affect EnerSys’ results, including earnings estimates, see EnerSys’ filings with the Securities and Exchange Commission, including “Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations,” and “Forward-Looking Statements,” set forth in EnerSys’ Annual Report on Form 10-K for the fiscal year ended March 31, 2024. No undue reliance should be placed on any forward-looking statements.

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