Entek Receives Direct Loan for Indiana EV Battery Separator Plant

ENTEK Lithium Battery Separator Plant Rendering

ENTEK, the only U.S.-owned and U.S.-based producer of ‘wet-process’ lithium-ion battery separator materials, announced that it has received a direct loan of up to $1.2 billion to ENTEK Lithium Separators LLC (ENTEK) from the U.S. Department of Energy’s (DOE) Loan Programs Office (LPO).

The loan will substantially 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. 

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.

ENTEK will be able to customize battery separators to accommodate numerous EV battery designs. The separators produced will be able to accommodate all existing lithium-ion EV battery chemistries, including NMC, NCA, LMFP, and LFP. Additionally, ENTEK will be able to sell its separators to manufacturers of lithium-ion batteries for energy storage applications.

ENTEK aims to become the U.S.’s first end-to-end, domestic supplier of “wet process” battery separators for the North American lithium-ion EV battery market. 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.

The project is expected to create 763 construction jobs and 635 operational jobs.