BUCKEYE, AZ—Kore Power Inc. is building a $500 million assembly plant here to produce lithium-ion batteries for electric vehicle charging stations, microgrids, utilities and other applications.

At full capacity, the 1 million square foot factory will be able to produce enough batteries each year to store 12 gigawatt-hours of electricity. That’s enough power to supply 3.2 million homes.

The company chose Arizona for the factory due to its track record of supporting energy storage, its growing clean transportation sector, and workforce availability. The location will also supply ample sunlight for a solar power installation.

“Arizona hit a home run,” said Kore Power CEO Lindsay Gorrill in a statement. “We’re fully committed to be a cornerstone of the state’s clean economy, and we’re proud to bring advanced cell manufacturing home to the U.S.”

Construction is scheduled to begin on the site by year end, with the goal of beginning production in the second quarter of 2023. The factory is expected to employ up to 3,000 people.