LA: Capchem USA Considers $350M Investment to Establish EV Battery Supply Chain Facility in Louisiana | Trade and Industry Development

LA: Capchem USA Considers $350M Investment to Establish EV Battery Supply Chain Facility in Louisiana

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Nov 30, 2023
This project would create the largest facility of its kind in the United States and support the growth of domestic lithium-ion battery and electric vehicle supply chains.

Capchem Technology USA Inc., a wholly owned subsidiary of Shenzhen Capchem Technology Co., announced it is evaluating plans to invest $350 million to build an integrated carbonate solvent and lithium-ion battery electrolyte manufacturing facility in Ascension Parish. This project would create the largest facility of its kind in the United States and support the growth of domestic lithium-ion battery and electric vehicle supply chains.
 
The company expects to create 95 direct new jobs with an estimated average annual salary of $71,000. Louisiana Economic Development estimates the project would result in 474 indirect new jobs, for a total of 569 potential new jobs in the Capital Region.
 
“Capchem USA’s consideration of a new EV battery-related manufacturing facility underscores yet again how Louisiana’s commitment to sustainability can strengthen our economy,” Gov. John Bel Edwards said. “If the project comes to fruition, Capchem would bring cutting-edge technology to Ascension Parish, create high-paying jobs for our skilled manufacturing workforce and reinforce our state's standing as a global hub of energy innovation and investment.”
 
The integrated facility would have the capacity to produce 200,000 tons of solvent and 100,000 tons of electrolyte annually. The solvent manufacturing plant would use ethylene oxide and carbon dioxide as feedstock and produce carbonate solvents using Capchem's unique proprietary ECOSIP technology. The electrolyte manufacturing process blends lithium salts, carbonate solvents and functional additives to produce solvents according to defined specifications.
 
“This project demonstrates Capchem’s determination to be a key contributor to the global drive toward electrification and reduction of carbon emissions, particularly for the automobile industry,” Capchem board chairman Johnson Qin said. “This important step will also help us fulfill our commitment to our customers in the U.S. battery manufacturing industry to provide the best products and services we can. It will also promote localization of the lithium-ion battery supply chain in North America. Capchem USA is a U.S. company and will become a proactive corporate citizen of Louisiana.”
 
Shenzhen Capchem Technology Co., Ltd., founded in China in 1996, established its U.S. base in 2018. The company estimates construction on its integrated Louisiana facilities to begin in 2025 and conclude in 2028, pending the completion of commercial agreements and regulatory approvals.
 
“We are pleased to bring this important project to Louisiana,” Capchem USA CEO Dr. Charlie Yao said. “We have experienced the state’s positive business environment, skilled workforce and essential infrastructure. Ascension Parish provides us optimal access to the raw materials, infrastructure and utilities our project requires. Our project could also be a start of the local chemical industry joining the EV and sustainable energy industry, and we look forward to contributing to the local community.”
 
To secure the project, the state has offered Capchem a competitive incentives package that includes the comprehensive workforce solutions of LED FastStart and a $2 million performance-based grant for infrastructure expenses contingent on meeting investment and employment targets. The company is also expected to participate in the state’s Industrial Tax Exemption and Quality Jobs programs.

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