Braskem Secures Federal Funding for UHMWPE Expansion in Texas

Braskem has been selected by the US Department of Energy’s (DOE) Office of Manufacturing and Energy Supply Chains to negotiate terms of a $50-million award under the Bipartisan Infrastructure Law. This landmark funding would expand Braskem's ultra-high-molecular-weight polyethylene (UHMWPE) production capabilities in La Porte, TX, specifically targeting the lithium-ion battery separator (LIBS) market.

An October 2023 report published by MLT Analytics* (MLTA) forecasts that demand for UHMWPE-based LIBS will grow at 16.4% per annum between 2022 and 2032. MLTA estimates current UHMWPE capacity at the La Porte site at 45,000 tonnes/year. Braskem also produces the resin in Brazil at a plant in Camaçari. 

Braskem sells UHMWPE under the trade name Utec. By driving innovation in Utec technology, this project would strengthen the lithium-ion battery value chain in the United States and is expected to generate over 250 skilled jobs across engineering, procurement, construction, and startup phases.

Supporting downstream battery separator film investment

In expanding UHMWPE capacity, the Braskem investment would support efforts to expand battery separator film (BSF) production in North America. Entek, the sole US-owned producer of “wet-process” lithium-ion battery separator film (BSF) operating in the United States, has received a conditional commitment of up to $1.2 billion for a direct loan to Entek Lithium Separators LLC from the US DOE's Loan Programs Office (LPO). The loan will finance a new facility in Terre Haute, IN, to manufacture lithium-ion BSF to be used primarily in electric vehicles (EVs).

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Japan’s Asahi Kasei, meanwhile, plans to construct a BSF plant in Ontario, Canada, for its Hipore wet-process film through an investment of $1.25 billion. The 700-million-square-meter plant is due to start up in 2027. Asahi Kasei is also an integrated producer of UHMWPE resin.

Financial support recognized

Mark Nikolich, CEO of Braskem America Inc., commented, “Braskem is honored to be selected by the US Department of Energy to negotiate this award as we look to help drive further momentum in US battery manufacturing capabilities. This award would not only accelerate our ability to meet the growing demands of our North American clients but also solidify our commitment to powering the electrification revolution with domestically produced, world-class UHMWPE. This funding would be a critical catalyst for the ongoing growth and success of our clients.”

An award under the Bipartisan Infrastructure Law entails funding allocated to specific projects, programs, or entities to implement infrastructure improvements and initiatives outlined in the law. The law provides approximately $550 billion in new federal investment for infrastructure projects over a five-year period (fiscal years 2022 through 2026), including competitive grants awarded through application processes, direct funding to specific programs or initiatives, and formula grants distributed to states based on predetermined formulas.

*The author is a co-founder of MLT Analytics.