ENTEK Lithium Separators Receives Direct Loan from Department of Energy Loan Programs Office for Indiana EV Battery Separator Manufacturing Plant

ENTEK, the only U.S.-owned and U.S.-based producer of ‘wet-process’ lithium-ion battery separator materials, announced today 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.

“For forty years, ENTEK has been serving the battery separator component needs of its customers with a commitment to productivity and innovation that our customers require for their battery applications,” stated ENTEK CEO Larry Keith. “The separator is a critical battery component responsible for the safety of the lithium batteries that we are increasingly relying on in many aspects of both our daily lives and as a country as we move to compete globally in energy storage critical to our national security.”

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 is a technology company at its core with expertise in equipment design and fabrication, process technologies, and materials science,” stated ENTEK CTO Richard Pekala, “These competencies make ENTEK the right company to lead the U.S. expansion of separator component manufacturing.”

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. ENTEK’s hiring strategy includes a focus on local labor, including workers who have been displaced from manufacturing industries. ENTEK’s recruitment partnerships include Ivy Tech Community College, Indiana State University, local workforce boards and workforce systems, community-based organizations, and Apprenticeship Readiness Programs.

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