US Grants USD 1.3 Billion Loan to Support Domestic EV Battery Production

The US Department of Energy (DOE) has granted a USD 1.3 billion direct loan to ENTEK Lithium Separators LLC (ENTEK) to build an advanced manufacturing facility in Terre Haute, Indiana. This initiative aims to strengthen domestic production of lithium-ion battery separators and reduce dependence on foreign competitors.

This facility will produce lithium-ion battery separators, a crucial component for electric vehicles (EVs), enhancing the domestic supply chain for advanced technology batteries. The loan consists of USD 1.2 billion in principal and USD 139.3 million in capitalised interest. The facility will support the growing demand for lithium-ion battery separators in North America, with an expected production capacity of 1.72 billion square meters annually—enough to support the manufacturing of approximately 1.9 million mid-size EVs or 1.3 million electric SUVs each year.

The project is projected to generate significant economic benefits, creating 763 construction jobs and 635 operational jobs in the region. ENTEK is working closely with Ivy Tech Community College and Indiana State University to provide specialised training and recruitment opportunities, particularly for displaced manufacturing workers and disadvantaged communities. This initiative aligns with DOE’s Justice40 Initiative, which ensures federal investments benefit marginalised communities.

Commenting on this, ENTEK CEO Larry Keith, stated, “For forty years, ENTEK has been serving the battery separator component needs of its customers with a commitment to productivity and innovation that our customers require for their battery applications."

He further added, “The separator is a critical battery component responsible for the safety of the lithium batteries that we are increasingly relying on in many aspects of both our daily lives and as a country as we move to compete globally in energy storage critical to our national security.”

ENTEK’s facility will utilise advanced technologies to produce separators compatible with all lithium-ion battery chemistries, including NMC, NCA, LMFP, and LFP, for both EVs and energy storage applications. The project will also help manufacturers meet battery component sourcing requirements under the 30 D Clean Vehicle Credit, further strengthening the U.S. clean energy supply chain.

This development is part of the DOE’s Advanced Technology Vehicles Manufacturing (ATVM) Loan Program, aimed at supporting the production of advanced technology vehicles and components to improve fuel efficiency and drive EV adoption. The program currently oversees 210 active applications totaling USD 303.5 billion in requested loans and guarantees, reflecting the growing momentum in domestic clean energy investments.