RALEIGH, N.C. (AP) – A startup company is giving up plans to build boxcar-sized batteries that help power companies save energy or shift to wind and solar power. Alevo Manufacturing Inc. informed state officials Friday that it was immediately shutting down its factory inside a massive, former Philip Morris USA cigarette plant and filing for bankruptcy protection.
Three years after the factory announced it was taking over a former Philip Morris manufacturing plant in North Carolina prompting my article about “ashes to energy storage,” the Associated Press is today reporting that Alevo is closing its doors.
In 2016, Alevo said it was installing its system in a retired oil-fired generator building in Delaware.
In February 2017, the firm announced it was expanding and creating 200 jobs.
Reasons cited for the failure include production challenges and insufficient revenue. Reportedly, it was unable to secure funding to continue operating.
Grid-level storage continues to grow but costs are high and regulations differ in each U.S. state, making it difficult for energy storage providers to see a clear path to profitability.
Alevo was trying to create a battery that would be long-lasting and cheap, and the challenge proved to be insurmountable this time. — JR