Orion to build plant in U.S. for acetylene-based conductive additives
Specialty chemicals company Orion Engineered Carbons says it plans to build the only plant in the U.S. producing acetylene-based conductive additives – a critical link in the value chain for lithium-ion batteries, high-voltage cables and other products for a transition to electrification and renewable energy, according to the company. Orion’s planned facility in La Porte, Texas, south of Houston, reportedly will be backed by a long-term agreement for acetylene supplied from a neighboring site owned by Equistar Chemicals LP, a subsidiary of LyondellBasell.
Acetylene is a colorless gas widely used as a chemical building block. Orion’s production process turns acetylene into a powder, which is added to lithium-ion batteries, enhancing electrical conductivity and extending the lifetime of the most valuable component of an electric vehicle, according to the company. The material plays a similar role in high-voltage cables used for wind and solar farms. Orion says it will invest between $120 million and $140 million in the facility, expected to start up in the second half of 2024. The investment reportedly should increase the company’s conductive additives capacity by approximately 12 kilotons per year.
“With this investment, we will quadruple our effective manufacturing capacity of acetylene-based conductive additives,” says Corning Painter, Orion’s CEO. “We are already experiencing high demand for this material, so expanding capacity for it is one of our top investment priorities and a major milestone in our growth plans. This is a very big day for Orion.”
The company, which has a similar plant in France with locally supplied acetylene gas from LyondellBasell, is the sole producer of acetylene-based conductive additives in the European Union, according to Orion. Demand for battery additives is expected to grow rapidly amid a global boom in the construction of giga factories making lithium-ion batteries. The plant will have a favorable environmental profile and will be subject to obtaining the routine regulatory approvals, according to the company.
For more information, visit: www.orioncarbons.com
