Dear customers, partners and shareholders,
First and foremost, I want to wish you and yours the best health and safety during these trying times. Business is important, but the mental and physical health of American and global citizens is paramount.
On behalf of the KORE team, I would like to take this opportunity to thank members of the medical community, first responders, military men and women, and the individuals working hard each day to keep society moving forward. It may be difficult, but we will get past this.
From a business perspective, the energy storage sector faces challenges within its supply chain as a result of COVID-19 and its impact on the manufacturing and shipping of products to customers. Many industry participants are experiencing delays dating back to early February, reflecting the timing of the outbreak in China, creating the concern that there will be a supply shortage.
Like many, our business has been impacted by COVID-19 with the ramping up of commercial production of our Mark 1™ energy storage system experiencing delays.
We are now pleased to report that our manufacturing partner, Do-Fluoride Chemicals Co., resumed operations in mid-March and is presently working to meet KORE Power’s customer orders. KORE will have our Mark 1™ Battery Management Systems (BMS) and Mark 1™ modules shipped to industry participants for integration testing beginning in early April.
In addition, KORE Power remains on track to obtain certifications for the Mark 1™ module and rack in the second quarter of 2020. Our existing supply chain will allow us to meet customer orders for deliveries in the second quarter of 2020.
Concurrently, there are over 200 people at work commissioning our new 2 GWh Chinese manufacturing facility. This facility will be dedicated to satisfying the growing demands of KORE Power’s customers. Commissioning and full production is expected in June 2020.
We continue our state-by-state site evaluation for a US-based manufacturing facility, an objective that is more pressing than ever! One of the goals of this facility is, of course, to alleviate the supply chain concerns currently experienced by most companies in the energy storage sector, and also create hundreds and then thousands of American jobs. We are incredibly proud of this vision.
KORE Power is committed to transparency with our stakeholders. If you have any questions, please reach out to me or a member of our Team, and we will respond promptly.
Most important - stay safe, stay healthy, and we look forward to seeing you soon.
About KORE Power:
KORE is a leading U.S.-based developer of battery cell technology and integrated solution manufacturer for the energy storage and e-mobility sectors. With clients in energy storage, e-mobility, utility, industrial and defense markets, KORE provides battery products and solutions that are the backbone for decarbonization across the globe. KORE is uniquely positioned to serve these markets as an integrated provider of cells, batteries, and solutions. Commercial production at the KOREPlex is targeted for the end of 2024, early 2025. The KOREPlex will have an initial annual production capacity of 6 GWh of battery cells, which may be expanded to 12 GWh to meet market demand. KORE is headquartered in Coeur d’Alene, Idaho, with operations in Waterbury, Vermont, and Buckeye, Arizona.