Deere & Co. will open a battery and charging manufacturing facility in Kernersville, North Carolina, the company announced this week.
The agriculture machinery maker, commonly known as John Deere, will use the site to produce Kreisel Electric products, including battery technology for e-mobility and stationary systems and charging solutions.
The company plans to break ground on the 2-GWh facility in the fall, with production slated to start in 2025.
Kreisel, which is majority owned by John Deere, produces battery systems for use in commercial vehicles, charging platforms, marine vessels and off-highway projects including construction equipment.
The site is another step in John Deere's plan to offer zero-emission, hybrid and electric options in all fields of work by 2026. The manufacturer is creating more than 20 models of electric and hybrid products for construction,an electric turf and compact utility tractor and an autonomous, battery-powered electric utility tractor for agriculture.
Production at the factory aims to increase John Deere's capacity for the North America off-highway market. The company is also expanding in Saran, France, where it is upfitting a factory to enable battery production.
"Together with Kreisel, John Deere is expanding its electrification portfolio to include more scalable solutions to meet a wider range of our customers' application needs," Jennifer Preston, global director of John Deere Electric Powertrain and CEO of Kreisel, said in a statement. "This investment is a great step forward as we work toward our goal of demonstrating viable low- and near-zero-carbon power solutions by 2026."
John Deere has had a presence in Kernersville since 1988, when it established an excavator manufacturing facility. The company highlighted the location's strong talent pool and easy connections to major highways, airports and seaports as factors in its decision.
The equipment maker already has an extensive presence in the U.S., with 39 existing distribution centers, manufacturing sites and offices across the country.
The new site comes as the company has been ramping production in recent months, as it played catch-up to meet rising demand.