Cabot Corporation has announced plans to expand its CCA production capacity in the United States. The company aims to enhance its leadership position in the market and support the growing demand for electric vehicles (EVs) with a planned investment of around $200 million over the next five years.
As part of this investment, Cabot plans to add conductive carbons capacity at their existing facility in Pampa, Texas, which will cost approximately $75-90 million to produce 15,000 metric tons of conductive carbons annually. This project is expected to create approximately 75 high-quality jobs and commence operation at the end of 2025. The company also operates a research and development facility and pilot plant in Pampa that focuses on developing new process technology for battery and other applications.
Today, we announced our plans to invest approximately $200 million in U.S. conductive carbon additives capacity over the next five years to support the transition to electric vehicles.
Read more: https://t.co/pSOlw5TRC5#ElectricVehicle #EV #CCA
— Cabot Corporation (@CabotCorp) January 26, 2023
CCAs are an essential component of lithium-ion battery chemistry and are used to provide sufficient electrical conductivity to the active materials. Cabot has the broadest portfolio of CCAs including conductive carbons, carbon nanotubes (CNT), carbon nanostructures (CNS), and blends of CCAs to deliver optimal performance. Additionally, the company’s global footprint of manufacturing assets, technology labs and commercial resources enables regional supply security support for its customers.
The U.S government has announced targeted efforts to build a domestic EV battery supply chain and Cabot believes that many of these programs present potential funding opportunities for the company in its efforts to expand CCA production capacity in the U.S.
Cabot also intends to make additional investments to expand its U.S. manufacturing and technology footprint over the next five years with plans to invest in new CNT powder and dispersion capacity and to continue extending its portfolio of innovative products for battery applications.
“We are at a pivotal moment as the vehicle fleet transitions from internal combustion engines to electric vehicles. CCAs are essential materials to make EV batteries work and expanding battery capacity and building a domestic materials supply chain are critical for the growth of EVs to be realized,” said Sean Keohane, president and chief executive officer. “We believe our technology position, along with our existing network of plants and talent, uniquely positions Cabot to support the growth expectations of our customers here in the U.S. Our planned investments will help support the electric vehicle transition and solidify Cabot as a global leader in CCAs for battery applications. These investments are expected to build on the strong momentum we generated in fiscal year 2022, where EBITDA in the product line was $29M with a year-over-year increase in revenue of 74%.”
