Monday, July 22, 2024

LPO Announces Plan to Support ENTEK Lithium Separator in Building Indiana EV Battery Separator Factory

$1.2 Billion Loan Commitment Announced for U.S. Lithium-Ion Battery Separator Manufacturing Facility in Indiana

The U.S. Department of Energy’s (DOE) Loan Programs Office (LPO) has made a groundbreaking announcement, with a conditional commitment of up to $1.2 billion for a direct loan to ENTEK Lithium Separators LLC (ENTEK). This loan will support the construction of a new facility in Terre Haute, Indiana, dedicated to manufacturing lithium-ion battery separators for electric vehicles (EVs).

The new facility is a key component in strengthening the U.S. lithium-ion battery cells supply chain and will contribute to the creation of batteries used in advanced technology vehicles. This project aligns with the Biden-Harris Administration’s whole-of-government approach to building a clean energy future and meeting the rising demand for EV adoption in the country.

In addition to the economic impact, the project is expected to create over 1,300 jobs, both in construction and operational roles. ENTEK is committed to working with local labor unions and educational institutions to provide specialized training and apprenticeship opportunities, ensuring that local communities benefit from the project.

The battery separators produced at the facility will play a crucial role in the performance and safety of lithium-ion batteries. With the increasing demand for EVs, the project will support the growth of the domestic battery separator capacity and help U.S. EV manufacturers meet the requirements for the 30D Clean Vehicle Credit, providing financial incentives for consumers to purchase new clean vehicles.

ENTEK’s goal is to become the first end-to-end, domestic supplier of “wet process” battery separators for the North American lithium-ion EV battery market. The project represents a significant step towards achieving President Biden’s target of having half of all new vehicles sold in 2030 be zero-emissions vehicles and reducing greenhouse emissions from the transportation sector by 2050.

While the DOE’s commitment is conditional, pending technical, legal, environmental, and financial conditions, the project has the potential to revolutionize the domestic EV manufacturing industry and contribute to a more sustainable transportation system in the United States.

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