I Squared has signed a definitive agreement to acquire a majority equity interest in Entek, a global manufacturer of battery separators.
I Squared’s US$800m investment complements a loan from the US Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) program of up to US$1.3bn.
The investment will fund construction of a gigafactory in Terre Haute, Indiana – the first and only facility of its kind in the US producing wet-process lithium-ion battery separators, which are critical components for batteries powering electric vehicles, energy storage systems, defense equipment and digital infrastructure. Once operational, the facility is expected to create approximately 763 construction jobs and 635 operations jobs in Terre Haute.
Larry Keith, chief executive officer of 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 US’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.”
Gautam Bhandari, managing partner and chief investment officer at I Squared Capital, added, “Entek exemplifies the type of critical, high-growth infrastructure platform that I Squared seeks to scale. Entek’s revenues are underpinned by long-term agreements with blue-chip clients, and its products are essential to US re-industrialization and energy security. With DOE support and rising demand in EVs, energy storage and defense, Entek is uniquely positioned to deliver sustainable growth for our investors and the US economy.”
The Terre Haute project, which will be executed in partnership with Clayco as the EPC contractor and Brückner Group, aims to 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.
In addition to the DOE’s up to US$1.3bn ATVM loan, the project has secured more than US$200m in 48C advanced manufacturing tax credits for Phase One of the project, and will be eligible for ongoing 45X production tax credits in Phase Two.
In related news, SK On launches all-solid-state battery pilot plant ahead of 2029 rollout