By Denny Jacob

Amprius Technologies on Friday said it and the U.S. Department of Energy's Office of Manufacturing and Energy Supply Chains mutually agreed to end their cost-shared demonstration project.

The manufacturer and distributor of batteries said its decision to exit the program provides it with much more operational flexibility in scale and other areas required to manufacture its batteries.

In March, Amprius said it would build a gigawatt-scale factory in Colorado for its next-generation lithium-ion batteries, which would've received $50 million in DOE funding.

Chief Executive Officer Kang Sun on Friday said the Colorado production site still remains a priority. It is still expected to be operational by 2025, the company said.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

June 02, 2023 16:38 ET (20:38 GMT)