The US government has just funded a $1.2 billion electric vehicle li-ion battery separator factory in the state of Indiana, a major step to boost the domestic industry.
$1.2B boost for US-made EV batteries
The US Department of Energy’s Advanced Technology Vehicles Manufacturing (AVTM) program has just committed to provide a whopping $1.2 billion for a new battery factory in Terre Haute, Indiana, according to the press release.
Oregon-based ENTEK secured the funding in the form of a conditional loan.
Notably, the AVTM is the same program that aided major electric vehicle players such as Tesla and Ford in the US.
The new facility will produce li-ion battery separators for electric vehicles, aligning with the Biden Administration’s efforts to solidify the local supply chain before the November election.
“There has never been a more exciting time to be a manufacturer in the battery industry. For forty years, ENTEK has been serving the battery separator needs of its customers with a commitment to productivity and innovation that our customers require for their battery applications.”
ENTEK CEO Larry Keith
What’s a battery separator?
A battery separator is a crucial component to ensure the performance and safety of a li-ion battery. It acts like a membrane between a battery’s anode and cathode.
It prevents electronic conduction, such as shorts or direct contact between the anode and cathode, while enabling ionic conduction through the electrolyte.
The new facility will be crucial in the US’ push for a more solid and reliable supply chain. For context, the DOE projects North America’s li-ion EV battery industry to require separator production of 7 to 10 billion square meters per year by 2030.
ENTEK can also sell its separators to li-ion battery makers for energy storage. In fact, it is a contracted supplier to KORE Power.
“KORE Power proactively partnered with ENTEK to ensure a reliable, domestic supply of battery separators for our Arizona giga factory, the KOREPlex. As a US manufacturer, we are dedicated to bolstering the success of companies like ENTEK to onshore our critical battery component supply chain.”
Lindsay Gorrill, Founder and CEO of KORE Power
The Indiana facility
ENTEK’s planned li-ion battery separator factory in Indiana is expected to hit an annual production capacity of 1.72 billion square meters for North America’s supply chain.
The number of electric vehicles this project can support depends on the form: cylindrical, pouch, or prismatic. Notably, each GWh of cell production needs 7-10 million square meters of battery separator depending on the battery form.
As per the most common battery forms today, the new facility can produce enough li-ion battery separators for about 1.9 million mid-size EVs or 1.3 million eSUVs.
The factory is also expected to generate 763 construction and 635 operational jobs, further boosting the US economy. Most importantly, it can aid US-based electric automakers by fulfilling battery part sourcing requirements under the 30D Clean Vehicle Credit in the Inflation Reduction Act.
