Louisiana lands major supply chain plant for EV batteries By EPN Staff A Japanese company says it will establish the first U.S. based production plant for key components in electric vehicle batteries in Louisiana. The $500 million plant will be located along the Mississippi River in Jefferson Parish, and UBE says it will produce 100,000 tons a year of dimethyl carbonate (DMC) and 40,000 tons of ethyl methyl carbonate (EMC). Why it matters These are crucial components in lithium ion batteries, and DMC is also used in the semiconductor manufacturing process. UBE said the new plant represents the largest manufacturing investment in company history and that it will be the sole DMC and EMC manufacturer in the United States. Strengthening the domestic supply chain for electric vehicle batteries and other energy storage systems, as well as for the semiconductor industry, has been a high priority for the federal government, and for U.S. industry. The National Renewable Energy Laboratory has called it “paramount to enabling greater domestic manufacturing,” the federal government has made billions in grants and tax incentives available, and the push has seen success. “In the span of under three years, the number of companies/facilities in the North American lithium-ion battery supply chain has doubled — increasing from more than 400 to over 800 from September 2021 until March of 2024,” the laboratory reported last year. Bigger picture UBE’s new plant is slated to open in November of 2026, and the company said it will use a “proprietary gas-phase nitrite process, which features lower energy consumption, higher quality and fewer by-products and impurities compared to ethylene-based process.” Cornerstone Chemical Company will provide raw materials for the plant as well as other logistics. The Jefferson Parish Economic Development Commission, an arm of the Jefferson Parish government, estimates the new plant will create 50-to-60 permanent jobs and more than 400 temporary construction jobs during construction of the facility. The company’s investment “signals that Jefferson Parish can be a key player in this global industry,” commission President and CEO Jerry Bologna said in a news release. Additional details The project received incentives the state’s economic development arm described as “competitive” as well as $80 million in local tax breaks over 10 years approved by the Jefferson Parish council. A groundbreaking ceremony for the plant drew a number of UBE officials, including the company President and Representative Director Masato Izumihara, and featured a ceremonial sake barrel breaking ceremony with local government officials.
