ENTEK

PROJECT SUMMARY 

In November 2024, LPO announced the closing of a $1.3 billion direct loan ($1.2 billion of principal and $139.3 million of capitalized interest) to ENTEK Lithium Separators LLC (ENTEK). The loan will substantially finance a new facility in Terre Haute, Indiana to manufacture lithium-ion battery separators. The separators will be used primarily in electric vehicles (EVs)—strengthening the U.S. lithium-ion battery cells supply chain and enabling the creation of batteries used in advanced technology vehicles.

TECHNOLOGY INNOVATION 

A battery separator is a 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.   

ECONOMIC IMPACT 

The project is expected to create 763 construction jobs and 635 operational jobs.  

The project will make a significant contribution to growth in domestic battery separator capacity and help U.S. EV manufacturers satisfy battery component sourcing requirements under the 30D Clean Vehicle Credit. The tax credit, included in the President's Inflation Reduction Act, offers up to $7,500 for the purchase of new clean vehicles.

CLIMATE BENEFIT 

By expanding the US EV supply chain, the SK Siltron CCS project will be critical in meeting the Biden-Harris Administration’s ambitious goal that half of all new vehicles sold in 2030 are zero-emissions vehicles. The deal also supports the President’s comprehensive strategy to build a safer, more sustainable transportation system and slash all greenhouse emissions from the transportation sector by 2050.

COMMUNITY BENEFIT 

As a part of their Community Benefits Plan, ENTEK has committed to creating opportunities for local labor, prioritizing hiring local workers who have been displaced from manufacturing industries. To recruit workers, ENTEK has forged partnerships with various institutions, such as Ivy Tech Community College, Indiana State University, and various community-based organizations. ENTEK is partnering with Ivy Tech to provide access to specialized training and apprenticeship programs, creating recruitment opportunities for disadvantaged communities. ENTEK has also been working very closely with local building and trades unions.