Dow Chemical to invest in world-class carbonate solvents plant in U.S.

Dow announced its intention to invest in ethylene derivatives capacity on the U.S. Gulf Coast, including the production of carbonate solvents, a key component of the lithium-ion battery supply chain.

This investment supports growth in the domestic electric vehicle (EV) and energy storage markets and builds on Dow's successful track record of growth projects, including recent global alkoxylation capacity expansions expected to come online in the U.S. Gulf Coast and Europe within the next two years.

Dow Chemical is working with the U.S. Department of Energy's (DOE) Office of Clean Energy Demonstration (OCED) and has been selected to participate in award negotiations to establish a world-scale carbonate solvent production facility on the U.S. Gulf Coast for lithium-ion battery production. The project is supported by agreements with customers, including leading electric vehicle OEMs and electrolyte manufacturers.

The facility will capture more than 90 percent of the carbon dioxide in the ethylene oxide manufacturing process and use it to produce carbonate solvents needed for vehicle electrification and to strengthen the U.S. power grid through energy storage. This investment aligns with Dow and the U.S. government’s goals to reduce greenhouse gas emissions in the mobility and transportation sectors by investing in supply chain resiliency for domestic battery and electric vehicle manufacturing.

Brendy Lange, vice president of Dow's Industrial Solutions business, said:"This announcement is an exciting demonstration of Dow’s decarbonization and growth strategy, combined with our mobility science capabilities and commitment to a sustainable future for the automotive industry." "Department of Energy’s support is a key enabler of this project, which will localize the supply of low-carbon, value-added products to help deliver the clean energy transition while advancing the decarbonization of our own operations."

Carbonate solvents are an important component of the internal electrolyte of lithium-ion batteries, helping to improve battery performance and life and promote the advancement and adoption of electric vehicle technology.