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Orion S.A. Commences Construction on Battery Materials Facility in Texas
Orion S.A. Commences Construction on Battery Materials Facility in Texas

Orion S.A. Commences Construction on Battery Materials Facility in Texas

  • 11-Apr-2024 10:52 AM
  • Journalist: Patrick Knight

On Tuesday, Orion S.A. (NYSE: OEC), a leading international company specializing in chemicals, commenced construction on a Texas plant. This facility will stand as the sole producer in the United States of acetylene-based conductive additives crucial for lithium-ion batteries and other applications essential to the worldwide transition towards electrification.

Located in La Porte, southeast of Houston, the facility will generate numerous high-skilled positions in both construction and technical sectors, contributing to job growth and introducing advanced technology to the American economy. Furthermore, the battery additives manufactured by Orion's plant will boast exceptional cleanliness, boasting a carbon footprint just one-tenth that of conventional materials.

During the groundbreaking ceremony, Orion CEO Corning Painter emphasized, "Orion currently stands as the exclusive provider of acetylene-based conductive additives in Europe. Our La Porte facility marks a significant stride in enhancing the local availability of these additives within the rapidly expanding U.S. battery market."

Each battery necessitates conductive additives, pivotal in facilitating an efficient electricity flow and prolonging the lifespan of lithium-ion batteries, which serve as the cornerstone of electric vehicles. Additionally, these additives are indispensable in high-voltage cables utilized in wind and solar farms.

The La Porte plant will manufacture additives derived from acetylene, a colorless gas meticulously transformed into powder of exceptional purity through Orion's production process, meeting the stringent requirements of top battery manufacturers. The acetylene supply will be sourced from a nearby facility owned by Equistar Chemicals LP, a subsidiary of LyondellBasell.

During Tuesday's groundbreaking ceremony, Kim Foley, Executive Vice President of Global Olefins and Polyolefins, Refining, and Supply Chain at LyondellBasell, expressed, "At LYB, we view electrification as a pivotal element of our strategy to diminish carbon emissions across our sectors. By backing the production of vital battery components, we are actively contributing to the creation of sustainable solutions for a brighter future."

Orion's La Porte plant bears resemblance to its facility in the city of Berre-l'Étang in southern France, both utilizing acetylene sourced from LyondellBasell. Progress on the La Porte project is well underway, with significant advancements in key equipment procurement and off-site fabrication. Field construction activities are intensifying, paving the way for the anticipated commencement of facility operations in the second quarter of 2025.

Orion S.A. stands at the forefront of the global carbon black market, providing a versatile solid form of carbon meticulously crafted into powder or pellets tailored to meet customers' precise requirements. This essential material finds applications across a spectrum of industries, including tires, coatings, ink, batteries, plastics, and various specialized high-performance sectors. Orion operates four innovation centers and boasts a network of 15 plants worldwide, offering unparalleled diversity in production processes within the industry.

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