Expansions: Indorama/Capchem evaluate lithium-ion battery solvents plant in US; BP to invest £50 million in new battery R&D centre in UK

Thailand-based integrated chemical firm Indorama Ventures Public Company Limited (IVL) says it has entered into a non-binding agreement with Capchem Technology USA Inc., a subsidiary of Shenzhen Capchem Technology Co, to study the opportunity to build and operate a world-class lithium-ion battery solvents plant at one of IVL’s petrochemical facilities in the US Gulf Coast. The proposed plant will supply the lithium-ion batteries industry in North America, which is boosted by significant growth in the development of electric vehicles (EV).

The proposed facility will produce ethylene carbonate and its chemical derivatives, which are essential components of the electrolytes solutions used in lithium-ion batteries. IVL’s Integrated Oxides and Derivatives (IOD) segment and lithium-ion battery chemicals firm Capchem, will study the proposal to develop and operate the plant. A new plant would significantly benefit the North American lithium-ion battery market, which currently depends on imports from Asia amid potential for accelerated growth in the EV industry.

Entering the lithium-ion battery market as a competitive new player reinforces IOD’s transition towards downstream specialty products, increasing IVL’s opportunities in attractive end-market applications. Under its Vision 2030 ambition, IVL is building on its global integrated petrochemicals model through investing in adjacent businesses that offer High Value Add (HVA) products which contribute to a more sustainable world.

The study will assess the opportunity to build a plant using Capchem’s established technology to produce ultra-pure ethylene carbonate, di-methyl carbonate, ethyl methyl carbonate, di-ethyl carbonate and derivatized electrolyte solutions. The study also includes an option to build a second module to meet expected growing market demand.

The key raw materials for the proposed new plant, namely purified ethylene oxide and carbon dioxide, will be supplied from IVL’s integrated supply network as part the company’s strategy to enhance end-market exposure, technologies, and downstream portfolio breadth. The sequestered carbon dioxide used in the process has a positive sustainability impact.

Alastair Port, Executive President, Integrated Oxides and Derivatives (IOD), IVL, said, “IVL is constantly looking for ways to enhance our sustainability programs towards our vision of creating a more sustainable world. This mutual study with Capchem USA not only helps us to achieve that, but also supports the adoption of zero-emission electric mobility. Given our proven operational excellence, highly skilled workforce, world-class infrastructure, and access to captive raw materials, we believe we are well-placed to successfully implement the technology, which will help to reduce North American EV manufacturers’ reliance on imports.”

Meanwhile in other news, oil giant BP is continuing to invest in the UK, with new investment of up to £50 million for new electric vehicle battery testing centre and analytical laboratory in Pangbourne. BP has previously announced its intention to invest up to £18 billion in the UK’s energy system by the end of 2030.

Planned to open by the end of 2024, the new facilities will be located at BP’s existing global headquarters for its Castrol business in Pangbourne, Berkshire, and will support the technology, engineering and science roles housed there. The site already undertakes research and development of fuels, lubricants and EV fluids and aims to become a leading hub for fluid technologies and engineering in the UK.

“We’re backing Britain. We’re fully committed to the UK’s energy transition. This additional investment will help accelerate the transition to EVs by developing solutions to help decarbonise the transport sector. This is another example of our ambitious plans to do more, and go faster,” said Louise Kingham, BP’s UK head of country.

The new facilities will help advance the development of leading fluid technologies and engineering for hybrid and fully battery electric vehicles, aiming to bring the industry closer to achieving the key tipping points for mainstream electric vehicle (EV) adoption. Castrol ON advanced EV fluids manage temperatures within the battery which enables ultra-fast charging and improves efficiency, which help EVs to go further on a single charge and extend the life of the drivetrain system.

In addition, the advanced e-fluid technologies and engineering can be applied to other industries such as thermal management fluids for data centres where demand is rising exponentially. Most of the world’s Internet Protocol (IP) traffic goes through data centres and since 2010 the number of internet users worldwide has doubled, while global internet traffic has increased 15-fold a trend expected to continue over the next decade.

Michelle Jou, CEO Castrol said: “We are committed to supporting the electrification of transport and the take-up of electric vehicles. The growth of EV fluids is a huge opportunity, and we aim to be the market leader in this sector. Two thirds of the world’s major car manufacturers use Castrol ON EV fluids as a part of their factory fill and we also supply Castrol ON EV fluids to the Jaguar TCS Racing Formula E team.

Castrol says it intends to use the new facilities to continue to work with car manufacturers and suppliers to co-engineer future battery technology and associated thermal management fluids. It will also look to develop future technologies required to help to enable the ultra-fast charging.

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