Japanese chemical giant UBE Corporation announced plans to develop an electric vehicle battery chemicals factory in Louisiana, marking the first supply chain project of its kind in the US Southeast.
Investment details
According to the press release, UBE Corporation plans to allocate $500 million to fund the construction of the first domestic production plant for electric vehicle li-ion battery ingredients in New Orleans.
The planned battery chemical production includes dimethyl carbonate (DMC) and ethyl methyl carbonate (EMC), a significant advancement in the country’s electric vehicle supply chain.
It will rise at Cornerstone Energy Park in Jefferson Parish, in the Greater New Orleans area. It is expected to generate approximately 300 construction jobs,
Ube expects the planned factory to hit an annual production of 100,000 metric tons of DMC and 40,000 metric tons of EMC derived from DMC. It also set the project development to conclude in July 2026. The factory will officially start operations in November 2026.
What are DMC and EMC?
DMC and EMC are basically “solvents” in an electric vehicle li-ion battery’s electrolyte. They improve ionic conductivity, which supports the efficient movement of lithium ions between the anode and cathode during charging/discharging activities. In effect, electric vehicles’ batteries can deliver improved driving range and an extended life cycle.
According to the company, the planned New Orleans battery chemical factory will “bolster the domestic battery components supply chain by reducing the current heavy reliance on Chinese imports.”
UBE produces its DMC through its proprietary gas phase nitrite process, which guarantees lower energy, fewer byproducts, and higher quality than ethylene-based production methods. To improve cost efficiency and cut C02 emissions, it plans to use cheaper natural gas as a raw material in its US-based DMC production.
UCCA’s establishment
It is also worth noting that UBE has established a new business unit called “UBE C1 Chemicals America (UCCA)” in Louisiana on November 13 to manage its new US operation. Now, the company announced plans to boost its capital by $200 million through its US arm, UBE Corporation America Inc. (UCAI).
“It is an honor to welcome such a well-respected, multi-generational Japanese company to Jefferson Parish. UBE’s new facility furthers Louisiana’s emergence as a leading location for future energy projects by establishing the first electric vehicle battery supply chain project in the Southeast region.
UBE’s operations will also bolster national security efforts by serving as the only US site to provide these critical elements of the country’s energy supply chain.”
Michael Hecht, president and CEO of Greater New Orleans
It is expected to generate 9 direct new job opportunities, and 47 direct new job vacancies will open at Cornerstone Chemical Company. Notably, CCC will provide its labor force, raw materials, and logistic services to aid UBE’s operations during the transition phase.
