Lion Energy acquired an unspecified equity stake in American Battery Factory (ABF) to formalize a strategic partnership aimed at securing domestic lithium iron phosphate (LFP) battery supply from ABF’s planned gigafactory in Tucson, Arizona. The equity investment builds on a prior 2022 offtake agreement where Lion ordered 4.5 GWh of LFP cells from ABF, covering the first five years of production from the facility’s initial 5.5 GWh capacity. Lion Energy plans to bring new U.S. assembly lines online by June 2026, relying on domestically manufactured prismatic LFP units from ABF’s Tucson facility to meet domestic content requirements under the Inflation Reduction Act. The partnership addresses tightening Foreign Entity of Concern (FEOC) regulations that restrict eligibility for high-tier tax credits, positioning Lion to avoid supply chain risks tied to foreign components. ABF’s ability to scale production to meet Lion’s June 2026 ramp-up timeline remains a critical uncertainty, particularly as ABF has previously partnered with China’s KAN Battery for pilot LFP cell production.