A massive investment into battery separator manufacturer ENTEK by I Squared Capital, along with Department of Energy investment, will fund a massive, one-of-a-kind (in the United States) construction project in Terre Haute:
I Squared’s $800 million investment complements a loan from the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) program of up to $1.3 billion. With initial funding already provided, these combined investments underscore the importance of strong public-private collaboration in securing U.S. domestic manufacturing of strategic technologies.
The investment will fund construction of a gigafactory in Terre Haute, Indiana – the first and only facility of its kind in the U.S. producing wet-process lithium-ion battery separators, critical components for batteries powering electric vehicles, energy storage systems, defense equipment, and digital infrastructure. The facility is expected to create approximately 763 construction jobs and 635 operations jobs in Terre Haute once operational.
From the CEO:
Larry Keith, Chief Executive Officer, ENTEK, said: “For more than 40 years, ENTEK has built a reputation for innovation, quality, and long-term partnerships with the world’s leading energy storage and technology companies. With I Squared’s capital, strategic expertise, and global network, we will expand the U.S.’s manufacturing footprint, create high-quality jobs, and meet surging demand for batteries across critical applications, from EVs and energy storage to military defense equipment and data centers.”
From the Governor:
Mike Braun, 52nd Governor of Indiana, said: “This first-of-a-kind gigafactory, built right here in Indiana, will increase energy production and bring down prices, all while boosting our local economy and creating well-paying jobs for hard-working Hoosiers.”
The project:
The Terre Haute, Indiana project, which will be executed in partnership with Clayco as the EPC contractor and Brueckner Group, the world leader in biaxial stretching equipment, will produce 1.4 billion square meters of wet-process lithium-ion battery separators annually in its first two phases and is designed to expand to 2.1 billion square meters. The investment will position ENTEK as the only scaled, U.S.-based supplier able to meet the sourcing requirements for battery manufacturers to receive 45X production tax credits and comply with the content requirements under the Inflation Reduction Act (IRA), as amended by the One Big Beautiful Bill Act (OBBBA), which reduce the allowance for Chinese materials – including separators. ENTEK’s product will provide a significant advantage to battery manufacturing customers seeking credits under the OBBBA.