ENTEK, the only US-owned and based producer of the wet-process of lithium-ion battery separator materials, recently announced that it has received a conditional commitment of up to $1.2 billion for a direct loan to ENTEK Lithium Separators (ENTEK) from the US Department of Energy’s (DOE) Loan Programs Office (LPO).
The loan will finance the new facility in Terre Haute, Indiana, to manufacture lithium-ion battery separators to be used primarily in electric vehicles (EVs). This project will strengthen and onshore the lithium-ion battery cell supply chain, enabling the creation of batteries used in advanced technology vehicles for EV propulsion.
A battery separator is a microporous membrane sandwiched between the anode and cathode of a battery. The principal function of the battery separator is to prevent electronic conduction (i.e., shorts or direct contact) between the anode and cathode while permitting ionic conduction via the electrolyte. Separators play an essential role in the performance and safety of lithium-ion batteries. ENTEK manufactures both ceramic-coated and uncoated separators.
The project will support roughly 1.9 million mid-size EVs or 1.3 million eSUVs based on current form factors chosen by cell manufacturers. The project will significantly contribute to domestic separator capacity and help US EV battery manufacturers satisfy the Inflation Reduction Act’s domestic content rules under the 30D Clean Vehicle Credit.
Additionally, ENTEK will be able to sell its separators to manufacturers of lithium-ion batteries for energy storage applications and is a contracted supplier to KORE Power.
The project is expected to create 763 construction jobs and 635 operational jobs. ENTEK’s hiring strategy includes a focus on local labor, including workers who have been displaced from manufacturing industries. ENTEK’s recruitment partnerships include Ivy Tech Community College, Indiana State University, local workforce boards and workforce systems, community-based organizations, and Apprenticeship Readiness Programs.
Domestic EV manufacturing has surged in response to the massive growth in the domestic and global EV markets and the financial incentives recently made available under the Inflation Reduction Act and Bipartisan Infrastructure Law. ENTEK aims to become the US’s first end-to-end, domestic supplier of “wet process” battery separators for the North American lithium-ion EV battery market.
While this conditional commitment indicates DOE’s intent to finance the project, the company must satisfy certain technical, legal, environmental, and financial conditions before the Department enters into definitive financing documents and funds the loan.
Filed Under: Batteries, Technology News