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Home » News » Indiana’s $1.2 Billion EV Battery Separator Factory Funded by US DOE

Indiana’s $1.2 Billion EV Battery Separator Factory Funded by US DOE

ENTEK’s $1.2 Billion Boost: Strengthening the US EV Supply Chain with a New Battery Separator Factory

Editorial Team (ET)July 11, 2025



The future of electric vehicles (EVs) is looking brighter than ever, especially with the latest development in the US. The Department of Energy (DOE) has conditionally approved a $1.2 billion loan to ENTEK for constructing a lithium-ion battery separator factory in Terre Haute, Indiana. This pivotal move aims to bolster the American EV market by enhancing the domestic supply chain for lithium-ion batteries, which are the heart of electric vehicles.

The Role of Battery Separators in Lithium-Ion Batteries

Before diving into the specifics of the project, it's crucial to understand the importance of battery separators in lithium-ion batteries. A battery separator is a vital component that sits between the anode and cathode of a battery. Its primary function is to prevent electronic conduction, which could lead to short circuits, while allowing ionic conduction through the electrolyte. This ensures the battery operates safely and efficiently, making separators indispensable for high-performance lithium-ion batteries.

ENTEK’s $1.2 Billion Loan from the US Department of Energy

The DOE’s Loan Programs Office has extended a conditional $1.2 billion loan to ENTEK, a company headquartered in Lebanon, Oregon. This financial backing is part of a broader initiative to support the domestic production of key components for EVs, aiming to reduce reliance on foreign supply chains and enhance national energy security. The loan is a testament to the government's commitment to advancing green technology and sustainable energy solutions.

Impact on the US Lithium-Ion Battery Supply Chain

This massive investment is set to significantly strengthen the US lithium-ion battery supply chain. By 2030, the DOE estimates that the North American lithium-ion EV battery industry will require an annual production of 7 to 10 billion square meters of battery separators. ENTEK’s new facility is poised to play a critical role in meeting this demand, ensuring a steady supply of high-quality separators for the burgeoning EV market.

About ENTEK

ENTEK is a well-established player in the battery manufacturing industry. Known for its innovative solutions and high-quality products, the company has been at the forefront of advancements in battery technology. With this new venture, ENTEK is set to further solidify its position as a key supplier in the North American market, contributing to the growth and sustainability of the EV industry.

Details of the New Factory in Terre Haute, Indiana

The new factory in Terre Haute, Indiana, is a significant undertaking. Once completed, it will have the capacity to manufacture 1.72 billion square meters of separator material annually. This production volume is expected to meet the needs of various battery form factors, including cylindrical, pouch, and prismatic cells, used in different EV battery chemistries.

Implications for the North American EV Market

The production capacity of the new factory will have a profound impact on the North American EV market. Depending on the battery form factors chosen by cell manufacturers, the project could support the production of approximately 1.9 million mid-size EVs or 1.3 million eSUVs annually. This substantial output will help accelerate the adoption of EVs across the continent, reducing greenhouse gas emissions and promoting cleaner transportation.

Employment and Economic Benefits

Beyond its environmental and technological impact, the ENTEK factory project is also a significant boon for the local economy. The construction phase alone is expected to create 763 jobs, with an additional 635 operational jobs once the factory is up and running. This influx of employment opportunities will stimulate the local economy, fostering community growth and development.

Environmental and Energy Storage Applications

While the primary focus is on EVs, the separators produced at the ENTEK factory will also have applications in energy storage solutions. This versatility underscores the broader environmental benefits of the project, as efficient energy storage is critical for integrating renewable energy sources and stabilizing the grid.

ENTEK’s Partnerships and Contracts

ENTEK’s venture is not happening in isolation. The company is already a contracted supplier to KORE Power, a prominent manufacturer of lithium-ion batteries. This partnership highlights the demand for high-quality separators and the strategic importance of ENTEK’s new factory in meeting this demand.

The 30D Clean Vehicle Credit and Its Impact

The 30D Clean Vehicle Credit, part of President Biden’s Inflation Reduction Act, plays a crucial role in this project. The credit incentivizes the production and purchase of clean vehicles by providing financial benefits for meeting certain battery component sourcing requirements. ENTEK’s new factory will help US EV manufacturers comply with these requirements, thereby maximizing the credit’s benefits and promoting the growth of the EV market.

Challenges and Future Prospects

Despite the promising outlook, the project is not without its challenges. Securing a steady supply of raw materials, managing production costs, and navigating regulatory requirements are some of the hurdles ENTEK might face. However, with robust government support and a clear demand for its products, ENTEK is well-positioned to overcome these challenges and thrive in the evolving market.

Government Support for EV Infrastructure

The DOE’s loan to ENTEK is part of a broader government effort to support EV infrastructure. From grants and tax incentives to research and development funding, various initiatives aim to accelerate the transition to electric mobility. These efforts are crucial for achieving national goals related to energy independence and environmental sustainability.

Conclusion

The $1.2 billion financing for ENTEK’s lithium-ion battery separator factory is a landmark development in the US EV industry. By enhancing the domestic supply chain and supporting the production of high-quality battery separators, this project will play a pivotal role in the growth of the EV market. With significant economic, environmental, and technological benefits, ENTEK’s new factory represents a major step forward in the journey toward a sustainable future.

Joe BidenUSA





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