Japan-based specialty chemicals manufacturer, Toyo Ink SC Holdings Co., Ltd. will invest more than $104 million to expand its battery material manufacturing operations to Simpson County, KY. The new company, LioChem e-Materials, LLC, will employ more than 140 people.
The operation will produce carbon nanotube (CNT) dispersions, the cathode conductive material used to enhance the performance of lithium-ion batteries, mainly in the emerging market of electric vehicles (EV). The technology is derived from Toyo Ink SC Holdings’ 125+ year experience in the responsible and sustainable production of liquid and dry pigment dispersions.
“Since 2021, the Toyo Ink Group has been supplying battery materials created at our manufacturing facility, LioChem, in the state of Georgia,” said Hideki Okaichi, Executive Operating Officer of Toyo Ink SC Holdings Co., Ltd. “North American demand for this essential material continues to grow rapidly. To meet projected future demand, we decided to establish LioChem e-Materials as our second battery material production based in the U.S. This new site is expected to raise our CNT dispersion capacity to four times the current level, while further bolstering our regional and global supply chain.”
The project will help support the growing EV sector throughout Kentucky and the surrounding region.
“Kentucky has made incredible strides developing our electric vehicle industry during the past few years,” said Governor Andy Beshear. “We are committed to making Kentucky an attractive location for companies making EVs, batteries and the supply chain around this fast-growing sector. I want to thank the leaders at LioChem for believing in Kentucky and our incredible workforce. I look forward to watching the company’s success and its contribution to making Kentucky a national leader in EVs.”
Kentucky continues to grow as a national leader in the growing EV market. Since June 2020, the commonwealth has seen nearly $10 billion in EV-related investments, with more than 8,900 full-time jobs announced by companies within the sector.
NAI READY, a global site selection firm based in Greenville, SC, represented LioChem e-Materials on its extensive site selection and incentive negotiation search leading to the purchase of the newly constructed speculative building situated on 26 acres in Henderson Interstate Industrial Park. Consultants Hal Johnson, SIOR, Jamie Newell, and Tak O’Haru supported the project.
The Kentucky Economic Development Finance Authority (KEDFA) approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $4 million in tax incentives based on the company’s investment of $104.4 million and job creation plans.
KEDFA also approved LioChem for up to $200,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing. In addition, LioChem can receive resources from Kentucky’s workforce service providers, including no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.