A Missouri-based battery manufacturer has selected Rapid City for its new 600,000-square-foot gigafactory, a project that eventually could bring up to 1,500 jobs to the community.

According to Aesir Technologies, Rapid City prevailed over 20 other communities that it considered for its new facility.

“Rapid City was head and shoulders above the other 20 potential site selections in terms of economic development package and business community involvement,” Randy Moore, president and CEO, told the Rapid City Journal.

The factory and distribution center will be the anchor for the new Rushmore Industrial Center developed by Dream Design International. Moore said access to rail, a state highway and Rapid City Regional Airport factored into his company’s decision.

Aesir Technologies manufactures nickel zinc batteries and intends to produce 2 billion-watt hours of batteries per year in the Rapid City facility. The batteries produced are intended to service the data center and 5G network markets, providing the necessary backup power to prevent data loss or service interruption during power outages.

The data center market traditionally has used lead-acid batteries, and lately, lithium ion has been garnering market share because of the size, weight and lower energy density of lead, according to a statement from the Governor’s Office of Economic Development.

Nickel zinc batteries use potassium hydroxide as the electrolyte, an active ingredient in soaps and shampoos, which the company said makes the batteries more environmentally friendly.

The company’s initial facility, one of four, will be a 150,000-square-foot manufacturing and distribution center capable of building 2 gigawatt-hours, or 2 billion-watt hours or 1.2 million batteries annually. When all four buildings are completed, the facility is expected to produce 4.8 million batteries and 8 gigawatt-hours annually.

The company said it initially plans to hire 400 people and ultimately expand to as many as 1,500.

According to Matt Brunner, economic development director of Elevate Rapid City, the move to western South Dakota will result in high-end talent and diversified jobs in the region.

“This level of hi-tech manufacturing Aesir is bringing will forever change the economic landscape of our region,” Brunner said in a statement. “The jobs created here will encourage continued growth and innovation as complementary businesses come alongside their one-of-a-kind product. Aesir’s commitment to the region embodies what it means to elevate the region for all.”

Representatives from Aesir said phase 1 of the $250 million total projected investment was secured through a syndication with U.S. Finance and the local investment community. The state of South Dakota has proposed providing debt support for the building and equipment with an additional commitment for up to $1 million in workforce development. Dream Design International of Rapid City will handle construction of the factory building.

“We are excited about this phase of our company’s growth,” Moore said in a statement. “It is important to note that we will continue to serve the aerospace and defense part of our business plan out of our Joplin, Missouri, manufacturing plant.”

Aesir’s Joplin facility and its employee base are working with the Navy and Air Force to develop nickel zinc technology for the Virginia-class submarine and the Minuteman III ICBM. Aesir will continue to rely on defense and aerospace contracts to strengthen and grow its Joplin facility to address the growing demand for nickel zinc technology in the defense and aerospace sectors, it said.

Aesir’s batteries are produced under nonexclusive license to use ZAF Energy Systems Inc. intellectual property. The license includes provision for Aesir to serve the aerospace, defense, medical and critical infrastructure markets.