Entek receives a $1.2 billion loan for battery separators plant in Terre Haute, Indiana

ENTEK, the U.S.-owned and U.S.-based producer of ‘wet-process’ lithium-ion battery separator materials, has received a conditional commitment of up to $1.2 billion for a direct loan to ENTEK Lithium Separators LLC (ENTEK) from the U.S. 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.

“There has never been a more exciting time to be a manufacturer in the battery industry,” stated ENTEK CEO Larry Keith. “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.”

A battery separator is a microporous membrane sandwiched between the anode and cathode of a battery. The principal functions of the battery separator are 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.

Based on current form factors chosen by cell manufacturers, the project will support roughly 1.9 million mid-size EVs or 1.3 million eSUVs. The project will make a significant contribution 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.