Quadrant will invest more than $95 million to build a 171,000-square-foot rare-earth magnet manufacturing operation in Louisville, KY. It will be the company’s first mass production facility in the U.S., and will create 200 full-time jobs for Kentuckians.
Rare-earth magnets are a type of permanent magnet made from alloys of rare-earth elements produced by Quadrant for use in electric vehicle motors and other automotive applications, consumer electronics, and within the medical, alternative energy and appliance industries, among others.
Quadrant has operated an engineering, machining and assembly hub in Louisville since 2001. The new location builds on the company’s goal to build a world-class magnetics, manufacturing and research campus and positions the company and community as leaders in attracting a critical and innovative industry back to the U.S.
The construction of this state-of-the-art manufacturing campus, known as Project NeoGrass by Quadrant leaders, positions the industry for further growth in the U.S.
“We believe Project NeoGrass is the blueprint that the magnetics industry and our customers need,” said Michael Brand, president of Quadrant. “It is a revitalization of rare-earth manufacturing and research and development in the U.S.”
Quadrant works with high-tech companies from concept to mass production of magnet-related products, including material selection, engineering and design services and prototype development.
“As electric vehicle production continues to ramp up across the automotive sector, we will continue to see growth of EV-related companies in the commonwealth,” said Governor Andy Beshear. “This investment and job creation will position Quadrant to capitalize on a burgeoning market, and I am thrilled to welcome the company’s growth in Kentucky.”
The Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $3.4 million in tax incentives based on the company’s investment of $95.2 million and annual targets of:
- Creation and maintenance of 200 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $28.15 including benefits across those jobs.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments. In addition, Quadrant can receive resources from Kentucky’s workforce service providers, includeing no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
“We are excited about this major commitment from Quadrant to establish a research and manufacturing campus around advanced technologies here in Louisville,” said Louisville Mayor Greg Fischer. “As we look at the future of automotive manufacturing, this investment continues to solidify the Louisville region as a national hub for EV technology and positions our city for the future of technology.”
“LG&E and KU are proud to be the energy provider of Quadrant’ facilities in Jeffersontown,” commented LG&E and KU President John R. Crockett III. “Our partnerships with our customers, Louisville Forward and the Cabinet for Economic Development are important to the growth and well-being of Greater Louisville. We join Gov. Beshear and Mayor Fisher in celebrating Quadrant’s expansion and enhanced commitment in our community.”
Quadrant’s investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the COVID-19 pandemic. In 2021, private-sector new-location and expansion announcements included a record $11.2 billion in total planned investment and commitments to create a record 18,000-plus full-time jobs across the coming years, according to the Kentucky Cabinet for Economic Development. Kentucky’s average incentivized hourly wage for projects statewide in 2021 was $24 before benefits, a 9.4% increase over the previous year.