Berea project will expand hybrid motor production and could grow to $379 million in total investment
FRANKFORT, Ky. (September 2, 2026) — Astemo Americas is expanding its Madison County manufacturing operations with a more than $112 million investment that will create 114 new jobs and increase production capacity for hybrid and electric vehicle motors.
The project represents the first phase of a broader expansion at the company’s Berea facilities. If fully developed, the total project could reach $379 million in investment and create as many as 282 jobs, which would make it the largest private-sector investment in Madison County in the past 20 years.
“Kentucky continues to lead the way when it comes to advanced manufacturing and EV operations, and this project represents another great company choosing to reinvest in the commonwealth,” said Gov. Andy Beshear. “The expansion will create 114 new job opportunities for Kentucky workers and their families.”
Berea Facilities to Add Nearly 300,000 Square Feet
Astemo Americas currently operates two manufacturing facilities in Berea.
The expansion will add nearly 300,000 square feet of operational space across the two plants, along with facility upgrades and new production equipment.
The improvements are expected to increase manufacturing capacity and combined output at the company’s Madison County operations, particularly for advanced hybrid and electric powertrain components.
“For over four decades, Kentucky has been a cornerstone of our U.S. operations, beginning with the establishment of our first plant in Harrodsburg in 1985,” said Tim Clark, president and CEO of Astemo Americas.
“Since then, we have expanded to three plants, making the state a core driver of our North American operations.”
Clark said the expansion will allow Astemo to provide U.S. automotive customers with advanced EV motor technologies while building on the company’s long-standing Kentucky manufacturing presence.
Astemo Strengthens Kentucky Automotive Manufacturing Footprint
Astemo Americas is a division of Astemo Ltd., a global automotive technology supplier serving major vehicle manufacturers worldwide.
The company produces and markets technologies including engine management systems, electric powertrains and integrated vehicle controls.
Astemo employs more than 15,000 workers across 23 manufacturing sites, including 12 operations in the United States and three facilities in Kentucky.
Its continued investment in Berea adds to Kentucky’s growing role in electric vehicle, battery and advanced automotive manufacturing.
Expansion Expected to Deliver Long-Term Economic Impact
Local officials said the investment will have a significant impact on Berea and the surrounding region.
“We are very excited to see this significant investment and expansion of Astemo Americas Inc. in Berea,” said Berea Mayor Bruce Fraley.
“This expansion will have a generational impact on our community and the region as quality career opportunities are created to facilitate additional production of advanced automotive components.”
Astemo is already the largest employer in Berea, and city leaders said the company’s decision to expand reinforces the region’s reputation for skilled manufacturing talent.
“This $112 million manufacturing expansion and creation of 114 new jobs represent a transformational investment in our city’s future,” said Donna Angel, director of business and economic development for the City of Berea.
Angel said the project will strengthen Berea’s manufacturing base, broaden the local tax base and help position the community for additional supply-chain and industrial investment.
Kentucky Continues EV and Battery Manufacturing Growth
Astemo’s latest project adds to a wave of electric vehicle and battery investments announced across Kentucky in recent years.
Major projects include AESC’s $2 billion battery gigafactory in Warren County, Ford Motor Co.’s multi-billion-dollar investments in Louisville and Hardin County, Shelbyville Battery Manufacturing’s $712 million Shelby County project and Toyota’s $1.3 billion expansion in Scott County.
Together, those projects have helped position Kentucky as a significant U.S. center for automotive electrification, battery production and advanced mobility manufacturing.
The Astemo project also comes during a period of strong statewide economic development activity. Since the beginning of the Beshear administration, Kentucky has announced more than 1,300 private-sector new-location and expansion projects, representing more than $50.7 billion in investment and more than 70,000 announced jobs.
Kentucky also reported a record $51.6 billion in exports in 2025, a 7.65% increase from the previous year.
State Incentives Support Astemo Expansion
To encourage the company’s investment and job creation, the Kentucky Economic Development Finance Authoritypreliminarily approved incentive agreements with Astemo Americas in April 2026 through the Kentucky Business Investment program and the Kentucky Enterprise Initiative Act.
The incentives are designed to support the company’s continued expansion, equipment investment and job growth in Madison County.
With a first-phase investment exceeding $112 million and the potential for a much larger long-term buildout, Astemo Americas’ Berea expansion further strengthens Kentucky’s position in the advanced automotive and EV manufacturing sectors.
