Orbia’s Fluorinated Solutions business, Koura, announced it is exploring two expansion projects at its Louisiana facility that would support America’s lithium-ion battery production supply chain, enabling domestic production of 1.7 million electric vehicles annually.
The first proposed project is the construction of a $400 million world-scale manufacturing facility that would produce LiPF6, a component that allows for the flow of electricity through lithium-ion batteries. Koura estimates the facility would produce 10,000 metric tons of LiPF6 per year.
The company has also proposed an additional $400 million investment to build a second production plant that would have the potential to manufacture 40,000 metric tons of R-142b annually. R-142b is a primary building block in polyvinylidene fluoride (PVDF), a critical binding agent for lithium-ion battery production.
If the projects move forward as outlined, Koura expects to create 100 direct new jobs across the two projects with an average annual salary of $80,000, while retaining 80 current positions. It also anticipates the creation of more than 2,000 construction jobs at peak construction of both facilities. Louisiana Economic Development estimates the projects would result in a combined 283 indirect new jobs for a total of 383 new jobs.
Koura’s Louisiana facility has been in operation since 1991 and currently produces R-134a refrigerant. These new facilities would support the company as it aims to expand domestic manufacturing of EV and electrical grid batteries and shift production of their materials and components to the U.S.
The company anticipates a final investment decision on both projects in the coming months. It expects construction of both new facilities to begin in 2025 and begin commencing operations in 2026.
In 2022, the company was selected to receive a $100 million award for production of LiPF6 from the U.S. Department of Energy as part of the first set of projects funded by the Bipartisan Infrastructure Law.
To support the projects in St. Gabriel, the state of Louisiana has prepared two competitive incentive packages that would include the comprehensive workforce development solutions of LED FastStart. Each project was also offered a $1.5 million performance-based grant for site infrastructure and a $1 million retention and modernization tax credit, both contingent upon meeting payroll and investment targets. The company is also expected to apply for the state’s Industrial Tax Exemption and Quality Jobs programs for both projects.
