US battery company EnerVenue has started mass production at a new facility in Changzhou, China, after abandoning an earlier plan to build its first factory in Kentucky.

The company said China offered a deeper industrial supply network and a strong base of engineering and manufacturing expertise that helped it develop its nickel hydrogen battery technology at commercial scale.

EnerVenue had previously announced a $264 million Kentucky project that was expected to create around 450 jobs, but the plan was later dropped as the technology and manufacturing process required further development.

The new Changzhou facility is about 95 percent automated and is expected to employ around 400 workers by the end of the year. The company estimates the facility cost between $20 million and $50 million.

EnerVenue aims to produce 250 megawatt hours of batteries during 2026 and increase annual capacity to 1 gigawatt hour by the third quarter of 2027. It also plans to develop additional manufacturing facilities in North America, the Middle East and Europe from 2028.