Investment manager I Squared Capital has agreed to acquire a majority equity interest in Entek, a battery separator manufacturer.
The company, which has invested $800 million into Entek, said that it coincides a loan from the U.S. Department of Energy’s advanced technology vehicles manufacturing (ATVM) programme of up to $1.3 billion.
This is for the construction of a gigafactory in Terre Haute, Indiana, and initial funding has already been provided.
It will be the first and only facility of its kind in the US producing wet-process lithium-ion battery separators in a patented process. These are components used for batteries in EVs, energy storage systems, defence equipment, and digital infrastructure.
The facility is said to create around 763 jobs during construction and 635 jobs when the facility is operational.
It will produce 1.4 billion square metres of separators annually in its first two phases and is designed to expand to 2.1 billion square metres.
The transaction is expected to close pending regulatory approvals.
Larry Keith, chief executive officer, Entek, said, “With I Squared’s capital, strategic expertise, and global network, we will expand the US’s manufacturing footprint, create high-quality jobs, and meet surging demand for batteries across critical applications, from EVs and energy storage to military defence equipment and data centres.”
Gautam Bhandari, managing partner and chief investment officer, I Squared Capital, said, “Entek exemplifies the type of critical, high-growth infrastructure platform that I Squared seeks to scale. Entek’s revenues are underpinned by long-term agreements with blue-chip clients, and its products are essential to US re-industrialisation and energy security. With DOE support and rising demand in EVs, energy storage, and defence, Entek is uniquely positioned to deliver sustainable growth for our investors and the US economy.”
