Japanese chemical company announces $500M Louisiana facility

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UBE Corp., a Japanese chemical company, announced Thursday that it plans to build a $500 million manufacturing facility for key electric vehicle battery components in Jefferson Parish.

The facility will manufacture two lithium-ion battery components: dimethyl carbonate and ethyl methyl carbonate. It will become the first U.S. facility to manufacture those components.

DMC and EMC are used to produce the electrolyte in lithium-ion batteries that contributes to extended battery life and increased driving range for electric vehicles. DMC is also an ingredient in certain semiconductor manufacturing processes.

The facility is intended to bolster the domestic battery components supply chain. Currently, the U.S. relies heavily on Chinese imports for such components.

UBE estimates that the facility will be capable of producing 100,000 metric tons of DMC per year and 40,000 metric tons of EMC per year.

Construction is expected to begin before the end of the year, and operations are scheduled to begin in late 2026. UBE estimates that approximately 300 construction jobs will be created at peak construction. Fifty-six new direct jobs will be created once construction is complete.

The state of Louisiana offered a competitive incentives package to secure the project, and UBE is expected to participate in the state’s Industrial Tax Exemption and Quality Jobs programs.

“This $500 million investment reinforces Louisiana’s leadership in the EV battery components supply chain, and is another win for southeast Louisiana’s manufacturing workforce,” says Louisiana Economic Development Secretary Susan Bonnett Bourgeois.

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