Norwegian battery firm Freyr recently confirmed plans for a Georgia factory that will supply batteries for energy storage.

Dubbed “Giga America,” the factory will be located on a 368-acre tract in Coweta County, on the western edge of the Atlanta metropolitan area, according to a Freyr press release.

Production will be stepped up in phases, with a targeted 34 gigawatt-hours from a $1.7 billion investment in the first phase, the company said, without confirming when that phase would be completed. A second phase will add more cell production lines and bring total investment to $2.6 billion by 2029, the company said.

Freyr does expect an incentive package from the State of Georgia and Coweta County and tax credits under the Inflation Reduction Act. The company said it’s also applying with the U.S. Department of Energy for a federal incentive package, potentially including “a grant and/or direct loans.”

The factory will use Boston-based 24M’s SemiSolid manufacturing process, which is billed as boosting efficiency in the manufacture of lithium-ion cells. Technicians from 24M will collaborate with Freyr’s own Norway-based staff.

Freyr is bullish on the U.S. energy storage market, which the company said is already the world’s largest. Citing estimates from consultancy Rystad Energy, Freyr also expects combined demand for both the U.S. and Europe to reach 1.4 terawatt-hours by 2030, a roughly 34-fold increase from 2022.

Rendering of proposed Freyr

But while renewable energy has more companies, utilities, and residences looking at battery-based energy storage, raw materials prices have kept the price of batteries inflated. Battery prices have steadily decreased over the past decade, but the recent raw material price surge will reportedly put further affordability gains off until 2024 at the earliest.

The battery plant is just the latest in a cluster of new manufacturing projects in Georgia.

Rivian’s massive Georgia plant is due to start making vehicles in 2024—with the smaller R2 model due to debut there later. Up to 500,000 Hyundai and Kia EVs will be built at an upcoming “Metaplant” in the state when it reaches full capacity around 2025. And SK Innovation’s Georgia plants will make batteries for up to 300,000 EVs annually—including the Ford F-150 Lightning.