American Battery Factory has broken ground on its lithium-ferro-phosphate (LFP) battery cell gigafactory in Tucson, Arizona. The gigafactory will provide an estimated 1,000 jobs. The company is investing $1.2 billion to open the factory.

The global market for lithium batteries is expected to reach $105 billion by 2025, as demand is expected to continue to accelerate. Increased renewable energy and electrification of transportation and the home is slated to drive this sharp increase in demand.

American Battery Factory’s gigafactory will be a site for both LFP cell production and further research and development opportunities. The factory is being built using Sprung Instant Structures’ rapid modular construction model. The R&D center and initial factory module are expected to be constructed by 2025.

The company has recently expanded its executive leadership team, adding former Major General John Kem as president and Dr. Jun Liu as chief scientist. The company has also secured strategic partnerships with companies like Celgard, Anovion and FNA Group.

“With this transformational investment, American Battery Factory advances Arizona’s clean energy industry,” said Arizona Governor Katie Hobbs.

Several clean energy companies have found a home in Arizona, including First Solar, TPI Composites, KORE Power and ElectraMeccanica.

Clean Energy Associates says that the global battery market will grow by 186% by 2025 from 2022 production totals of 1,706 GWh.