Capchem USA Eyes $350 Million Investment in EV Battery Facility

30 Nov, 2023

Capchem USA Eyes $350 Million Investment in EV Battery Facility

Capchem Technology USA Inc., a subsidiary of Shenzhen Capchem Technology Co., is exploring a $350 million investment to establish a cutting-edge integrated carbonate solvent and lithium-ion battery electrolyte manufacturing facility in Ascension Parish. If realized, this project would position itself as the largest of its kind in the U.S., supporting the growth of domestic lithium-ion battery and electric vehicle supply chains.

The proposed facility aims to generate 95 direct jobs with an average annual salary of $71,000, contributing to the growth of the skilled manufacturing workforce. Louisiana Economic Development anticipates an additional 474 indirect jobs, potentially creating a total of 569 new jobs in the Capital Region.

Governor John Bel Edwards highlighted the significance of Capchem USA's potential project, emphasizing its alignment with Louisiana's commitment to sustainability and its potential to strengthen the state's position as a global hub for energy innovation.

The integrated facility plans to produce 200,000 tons of solvent and 100,000 tons of electrolyte annually, utilizing Capchem's proprietary ECOSIP technology. The manufacturing process involves ethylene oxide and carbon dioxide as feedstock for solvent production and a meticulous blend of lithium salts, carbonate solvents, and functional additives for electrolyte manufacturing.

Capchem's Chairman, Johnson Qin, underscored the company's dedication to contributing to global electrification and carbon emission reduction, especially within the automotive industry. The project also signifies Capchem's commitment to supporting the U.S. battery manufacturing industry and fostering the localization of the lithium-ion battery supply chain in North America.

Founded in China in 1996, Shenzhen Capchem Technology Co., Ltd., established its U.S. base in 2018. Construction on the integrated Louisiana facilities is estimated to commence in 2025, concluding in 2028, subject to commercial agreements and regulatory approvals.

Capchem USA CEO, Dr. Charlie Yao, expressed the company's satisfaction with Louisiana's positive business environment, skilled workforce, and essential infrastructure. Ascension Parish's strategic location provides optimal access to necessary raw materials, infrastructure, and utilities. Capchem's project is poised to contribute to the local community and marks a potential collaboration between the local chemical industry and the EV and sustainable energy sectors.

To secure the project, Louisiana has presented Capchem with a competitive incentives package, including LED FastStart's workforce solutions, a $2 million performance-based grant, and anticipated participation in the Industrial Tax Exemption and Quality Jobs programs.