Battery separator company Entek is set to receive a $1.2 billion conditional loan from the US Department of Energy Loan Programs Office (LPO) for a new lithium-ion battery separator manufacturing plant in Terre Haute, Indiana.
The US administration is working to reduce reliance on economic competitors like China. The DOE estimates that by 2030, the North American lithium-ion EV battery industry will require annual separator production of 7–10 billion square metres. Once complete, the facility is expected to have the capacity to manufacture 1.72 billion sq m of separator material annually for the North American EV market. It expects to begin production at the new facility in the second half of 2025.
The LPO’s analysis is that the number of EVs supported by this project depends upon the battery form factor (cylindrical, pouch or prismatic) used for various battery chemistries. Each GWh of cell manufacturing requires 7–10 million sq m of battery separator, depending on the battery form factor. 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, it said.
The company said it will be able to customise battery separators to accommodate numerous EV battery designs. It manufactures both ceramic coated and uncoated separators and supplies both lead-acid and lithium-ion battery manufacturers. It is a contracted supplier to cell manufacturer Kore Power.
The separators produced will be able to accommodate all existing lithium-ion EV battery chemistries, including NMC, NCA, LMFP and LFP, it said. Entek will also be able to sell its separators to manufacturers of lithium-ion batteries for energy storage applications. It is also looking to enter the flow battery market.
The company has to satisfy certain technical, legal, environmental, and financial conditions before it gets the money.