Japanese chemical company UBE announces $500 million investment in building factory in Louisiana

Japanese chemical company UBE Corp. announced on January 29 that it plans to spend $500 million to build a key electric vehicle battery parts manufacturing plant in Jefferson Parish.

The plant will produce two types of lithium-ion battery components: dimethyl carbonate (DMC) and ethyl methyl carbonate (EMC). It will be the first factory in the United States to produce these components. DMC and EMC are used to produce electrolytes in lithium-ion batteries, helping to extend battery life and increase the range of electric vehicles. DMC is also a component of some semiconductor manufacturing processes.

The plant is designed to strengthen the U.S. domestic battery component supply chain. Currently, the United States relies heavily on imports of such parts from China. UBE expects the plant to produce 100,000 tonnes of DMC and 40,000 tonnes of EMC annually.

Construction is expected to begin before the end of 2024, with operations scheduled to begin in late 2026. UBE estimates that approximately 300 construction jobs will be created during peak construction. Once construction is complete, 56 new direct jobs will be created.

The state of Louisiana offered a competitive incentive 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 solidifies Louisiana’s leadership in the electric vehicle battery component supply chain and is also another victory for Southeast Louisiana’s manufacturing workforce." said Louisiana Economic Development Secretary Susan Bonnett Bourgeois.