A Silicon Valley-based lithium-ion battery manufacturer is planning to open its first Denver-area warehouse by 2025.

Amprius Technologies, which claims to have “the industry’s highest known energy density cells,” announced on March 6 that it has signed a letter of intent to lease a 775K SF warehouse in Brighton, which is about 30 minutes northeast of the city. However, lease negotiations remain ongoing.

The factory is expected to support about 300 jobs. Amprius said in a press release that the Fremont, California-headquartered company chose Colorado for its next warehouse because the state has more than 1.3M SF of existing factory space to support lithium-ion battery production, which could help reduce overall build-out costs. Amprius was also considering other states like Texas and Georgia for the project.

To sweeten the deal, the Colorado Economic Development Commission approved more than $5M in tax incentives in February for Amprius to build its warehouse, The Denver Post reported.

“The selection of Colorado for our gigawatt-scale factory marks an important milestone for Amprius,” Amprius Technologies CEO Kang Sun said in a statement. “We worked closely with the state of Colorado, the Colorado Economic Development Commission, Adams County, and the City of Brighton to align on terms that are mutually beneficial and include a comprehensive incentive proposal. Increasing production to meet the substantial market demand for our breakthrough silicon anode lithium-ion technology remains a priority, and we are confident this factory will allow us to scale and effectively serve the electric mobility market.”

Gov. Jared Polis applauded Amprius’ decision to build a new factory in Colorado, adding that the move will “stoke our local economy and create hundreds of good jobs.”

“We need more batteries to power the future, and now we will be manufacturing more of them right here in Colorado,” Polis said in a statement.

Colorado has become an attractive state for lithium-ion battery producers over the last couple of years as the state seeks to become a leader in electric car deployment.

One of Colorado’s most recognizable businesses working in this field is Solid Power, a startup based in Louisville. The company manufactures solid-state batteries that are hoped to provide a longer-lasting charge for electric vehicles. In July 2022, the company signed a $20M development agreement with automobile manufacturing company BMW Group to help the company boost its solid-state battery production.