USA: US$1.2 billion agreement for EV battery plant

The Department of Energy grants a conditional loan to ENTEK Lithium Separators LLC to finance a lithium-ion battery separator plant for electric vehicles in Indiana.

Share:

Prêt usine séparateurs batteries VE

Gain full professional access to energynews.pro from 4.90€/month.
Designed for decision-makers, with no long-term commitment.

Over 30,000 articles published since 2021.
150 new market analyses every week to decode global energy trends.

Monthly Digital PRO PASS

Immediate Access
4.90€/month*

No commitment – cancel anytime, activation in 2 minutes.

*Special launch offer: 1st month at the indicated price, then 14.90 €/month, no long-term commitment.

Annual Digital PRO Pass

Full Annual Access
99€/year*

To access all of energynews.pro without any limits

*Introductory annual price for year one, automatically renewed at 149.00 €/year from the second year.

The U.S. Department of Energy (DOE) has announced a conditional $1.2 billion loan to ENTEK Lithium Separators LLC. The funding is for the construction of a plant in Terre Haute, Indiana, to manufacture lithium-ion battery separators, mainly used in electric vehicles (EVs). Battery separators play a crucial role in the performance and safety of lithium-ion batteries, separating the electrodes while allowing lithium ions to pass through.
This initiative is part of the DOE‘s Advanced Technology Vehicles Manufacturing Loan Program, which has direct lending authority of $40 billion. The project is expected to support the production of batteries for around 1.9 million medium-sized electric vehicles or 1.3 million electric SUVs. At the same time, the White House has introduced tax measures to give maximum support to the electric vehicle industry in the USA.

Economic and industrial impact

Construction of the new plant is expected to generate over 760 construction jobs and 635 long-term operational jobs. ENTEK claims that the separators produced at this plant will be compatible with all existing lithium-ion battery chemistries for EVs. This broad compatibility is essential to meet the diverse needs of battery cell manufacturers.
The new regulatory requirements imposed on automakers to benefit from the $7,500 EV tax credits have changed the dynamics of the supply chain. Since January 1, Chinese content in batteries eligible for these credits has been restricted, reducing the number of eligible vehicles. Automakers have had to adjust their supply chains to restore the eligibility of many vehicles.

Future projections and challenges

The DOE estimates that by 2030, the North American EV lithium-ion battery industry will require annual separator production of between 7 and 10 billion square meters. These projections underline the strategic importance of the ENTEK project for the battery industry and the energy transition in the United States.
However, the finalization of the loan remains uncertain. DOE has not yet set a specific date for the conclusion of this financing. This situation is reminiscent of the $9.2 billion loan announced in June 2023 for Ford Motor and SK On’s Blue Oval SK joint venture, which has still not closed.

Perspective and analysis

The conditional loan to ENTEK is part of a broader U.S. government strategy to strengthen domestic production capacity for critical EV components. The aim is to reduce dependence on imports, particularly from China, and secure supplies of essential components to support the growth of the EV industry.
This initiative could also stimulate innovation in battery design and manufacture, by encouraging manufacturers to develop more efficient and safer solutions. The success of this project could serve as a model for other investments in battery technologies and the energy transition.
The ENTEK project represents a significant breakthrough for the US battery industry, with major potential implications for the EV supply chain and the energy transition. It will remain crucial to monitor the finalization of this loan and the evolution of the project to assess its real impact on the market.

Stellantis CEO Antonio Filosa calls for adjustments to the 2035 deadline to safeguard industrial activity and accelerate decarbonisation through flexibility mechanisms.
Faced with falling margins and overcapacity, Beijing is restructuring its electric vehicle industry by focusing on quality, standards, and technological upgrading.
An American-built electric aircraft completed a test flight between Stavanger and Bergen, marking a key step in integrating zero-emission air cargo operations into Norwegian airspace.
The visit marks a new step in the cooperation between the United Arab Emirates and Tellus Power, aiming to establish an EV charging station production unit in the Gulf.
Toyota launches production of its first electric vehicle in Europe at its Kolin plant in the Czech Republic, supported by a €680mn investment, including €64mn in public funding.
The Canadian government invests CAD22.7mn ($16.7mn) in eight projects to strengthen the electric vehicle charging network in British Columbia.
Ireland presents an SAF roadmap structured around four pillars, projecting 88,000 tons in 2030 and 318,000 tons in 2035, aligned with ReFuelEU and European support, while Aer Lingus and Ryanair set usage targets.
Electric vehicle charging infrastructure investments are expected to hit $300 billion by 2040, driven by a 12.3% annual increase in global charging port deployments.
The Japanese group TDK’s venture capital fund supports Ultraviolette, an Indian electric motorcycle manufacturer, to help it scale up in a domestic market estimated at over $50 billion within ten years.
U Power announces the signing of a letter of intent to supply 300 battery-swapping compatible electric vehicles in partnership with a Hong Kong-based technology manufacturer, marking a major milestone for intelligent commercial mobility.
According to Ember, only 3% of India’s wind and solar targets for 2032 would be sufficient to cover the entire electric vehicle charging demand, provided appropriate measures are taken for grid management and charging infrastructure.
TotalEnergies holds 23% of the high-power charging market on French motorways, according to data published by Gireve, with more than 1,800 active points across 265 service stations.
The British government is mobilising USD845mn to subsidise electric-car purchases, easing pressure on an industry hit by US tariffs and preparing for the 2030 ban on internal-combustion engines.
Octopus Energy’s Electroverse platform surpasses one million public electric vehicle charging points, strengthening its international presence with a subscription-free model available in 40 countries through a single payment card.
Belgian marine constructor DEME floated its second giant wind-turbine installation vessel, Norse Energi, at China’s CIMC Raffles yard, a key step in an investment programme aimed at meeting growing offshore lifting demand.
The Northern Sea Route attracts businesses due to its logistical speed but presents significant technological challenges for the naval industry, especially in designing vessels adapted to extreme Arctic conditions.
The U.S. Department of Transportation is withdrawing strict fuel economy standards adopted under Biden, citing overreach in legal authority regarding the integration of electric vehicles into regulatory calculations for automakers.
The Indian Renewable Energy Development Agency is pursuing Gensol for a total default of over Rs 7.28 billion ($90.91mn), now targeting its electric vehicle leasing business.
The International Energy Agency expects electric vehicles to cut oil demand by 5 million barrels per day by 2030, down from a previous estimate of 6 million, citing economic and trade uncertainties.
Adani Enterprises has launched a hydrogen-powered truck at a public mine in Chhattisgarh, marking a first in India for heavy transport in the mining sector.

Log in to read this article

You'll also have access to a selection of our best content.