5/22/24, 9:00 PM

Project will fuel economic growth in Ascension Parish

Ascension Parish, La. (May 20, 2024) – Capchem USA, a trailblazer in battery materials technology, today unveiled plans for the largest lithium-ion battery materials plant in the United States, to be situated in Ascension Parish’s thriving industrial corridor. The plant is poised to become a beacon of innovation and economic prosperity for the region.

Slated to begin construction in 2026, this new facility will serve as a cornerstone of Capchem USA’s expansion efforts, catering to the rapidly growing demand for lithium-ion batteries in various industries, including automotive, energy storage, and consumer electronics. This investment will also support the development of a strong domestic supply chain for these battery materials and related technologies.

The facility will be a catalyst for job creation. Capchem USA’s facility is expected to create 95 direct new jobs and an additional 474 indirect new jobs, as estimated by Louisiana Economic Development.

“This facility will be a game-changer for the American battery materials industry and Ascension Parish,” remarked Charlie Yao, CEO of Caphem USA. “We are proud to have a facility like this located on American soil, that will not only propel innovation but also provide meaningful employment opportunities for the community.”

The fully integrated facility is poised to achieve an annual production capacity of 200,000 tons of solvents and 100,000 tons of electrolytes. Leveraging Capchem’s innovative ECOSIPTM technology, the solvent manufacturing plant will harness ethylene oxide and carbon dioxide as feedstock to craft carbonate solvents. Simultaneously, the electrolyte manufacturing process will blend lithium salts, carbonate solvents, and specialized additives according to defined specifications. This significant scale of production emphasizes Capchem USA’s dedication to meeting the growing domestic demand for sustainable energy solutions.

The company has signed an agreement with the State of Louisiana, in which Louisiana Economic Development will provide qualifying incentive programs for project implementation, including industrial tax incentives, support for infrastructure construction, and high-quality employment programs. Capchem USA has successfully obtained Industrial Tax Exemption Program (ITEP) approval, providing up to a 10-year abatement on a portion of the taxes related to the project, with an estimated total value of $71.3M to the company.

Capchem USA’s investment in Ascension Parish underscores its dedication to promoting technological excellence and environmental stewardship. The facility will feature state-of-the-art manufacturing processes designed to optimize efficiency, minimize waste, and reduce environmental impact. Capchem USA aims to set new benchmarks for eco-friendly battery materials production by leveraging engineering techniques and sustainable practices.

Through collaboration, innovation, and community engagement, Capchem USA is ready to redefine the landscape of the American battery materials industry while leaving a lasting positive impact on Louisiana and its burgeoning domestic supply chain.

About Capchem

Capchem is a leading company in electronic chemicals and functional materials. It is headquartered in Shenzhen, China, and was listed on Shenzhen Stock Exchange (Stock Code: 300037). Capchem’s portfolio is organized into lithium-ion battery chemicals, capacitor chemicals, organic fluorine chemicals, and semiconductor chemicals.
Lithium-ion Battery Chemicals Business Unit is the largest business sector of Capchem. Its product portfolio comprises battery electrolyte, as well as additives, carbonate solvents and novel lithium salts used in electrolyte. With advanced research and development capabilities, Capchem has been providing integrated solutions for leading lithium-ion battery companies all over the world.