Orion Engineered Carbons, a specialty chemical company, announced plans to build the only plant in the U.S. producing acetylene-based conductive additives – a critical link in the value chain for lithium-ion batteries, high-voltage cables and other products powering the global transition to electrification and renewable energy, said the company.
Orion’s planned facility in La Porte, Texas, south of Houston, will be backed by a long-term agreement for acetylene supplied from a neighboring site owned by Equistar Chemicals LP, a subsidiary of LyondellBasell.
Acetylene is a colorless gas widely used as a chemical building block. Orion’s production process turns acetylene into a powder, which is added to lithium-ion batteries, enhancing electrical conductivity and extending the lifetime of the most valuable component of an electric vehicle. The material plays a similar role in high-voltage cables used for wind and solar farms.
Orion will invest between USD120 million to USD140 million in the facility, expected to start up in the second half of 2024. This investment should increase the company’s conductive additives capacity by approximately 12 kilotons per year.
The company, which has a similar plant in France with locally supplied acetylene gas from LyondellBasell, is the sole producer of acetylene-based conductive additives in the European Union. The U.S. plant will bring new technology and high-skilled jobs to the country and positively impact long-term job creation for the local community. Demand for battery additives is expected to grow rapidly amid a global boom in the construction of gigafactories making lithium-ion batteries.
The plant will have a favorable environmental profile and will be subject to obtaining the routine regulatory approvals.
As per MRC, Orion Engineered Carbons (Houston, Texas) says it will raise prices by 20% globally for acetylene black after a period of investment in its production plant in France “to better serve the growing market demand for acetylene black used in lithium-ion (Li-on) battery production” . The price increase takes effect on 1 March 2021 or as contracts allow.
We remind, Orion Engineered Carbons has raised its fourth-quarter guidance for adjusted EBITDA earnings to a range of USD64-67 million from the previously issued range of USD44-55 million given during its third quarter results on 5 November.
Orion Engineered Carbons is a worldwide supplier of Carbon Black. The company offers standard and high-performance products for Coatings, Printing Inks, Polymers, Rubber and other applications. Our high-quality Gas Blacks, Furnace Blacks and Specialty Carbon Blacks tint, colorize and enhance the performance of plastics, paints and coatings, inks and toners, adhesives and sealants, tires, and manufactured rubber goods such as automotive belts and hoses.
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