Capchem USA Evaluating €320 Million Investment in Louisiana

Potential EV Battery Supply Chain Facility in USA

05.12.2023 - Capchem Technology USA Inc., a subsidiary of Shenzhen Capchem Technology Co., may invest €320 million ($350 million) in building an integrated carbonate solvent and lithium-ion battery electrolyte facility in Louisiana, USA.

The proposed integrated facility plans to annually produce 200,000 tons of solvent and 100,000 tons of electrolyte. The solvent manufacturing plant will utilize ethylene oxide and carbon dioxide as feedstock, employing Capchem's Ecosip technology. The electrolyte manufacturing process combines lithium salts, carbonate solvents, and functional additives to meet specific specifications.

“Capchem USA’s consideration of a new EV battery-related manufacturing facility underscores yet again how Louisiana’s commitment to sustainability can strengthen our economy,” said Gov. John Bel Edwards.

“This project demonstrates Capchem’s determination to be a key contributor to the global drive toward electrification and reduction of carbon emissions, particularly for the automobile industry,” commented Johnson Qin, Capchem Board Chairman.

Founded in China in 1996, Shenzhen Capchem Technology Co., Ltd. expanded its presence to the United States in 2018. The company anticipates commencing construction on its integrated facilities in Louisiana by 2025, with completion expected in 2028, subject to the finalization of commercial agreements and regulatory approvals.

Capchem USA CEO Charlie Yao said, “Ascension Parish provides us optimal access to the raw materials, infrastructure and utilities our project requires. Our project could also be a start of the local chemical industry joining the EV and sustainable energy industry, and we look forward to contributing to the local community.”

To secure the project, the state is offering Capchem a competitive incentives package, including workforce solutions and a €1.85 million ($2 million) grant for infrastructure, contingent on meeting targets. The company is also expected to participate in the state's Industrial Tax Exemption and Quality Jobs programs.


Capchem Technology USA Inc.

5718 Westheimer Rd, Suite 1000
77057 Houston
Texas , United States