I Squared acquires majority stake in ENTEK Technology Holdings

I Squared Capital (I Squared) has announced its acquisition of a majority equity interest in battery separator manufacturer ENTEK Technology Holdings LLC (ENTEK). The company’s $800 million investment, along with a loan from the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) program of up to $1.3 billion, demonstrates the importance of strong public-private collaboration in securing U.S. domestic manufacturing of strategic technologies.

The investment will fund the construction of a gigafactory in Terre Haute, Indiana, the first of its kind in the US. At the facility, wet-process lithium-ion battery separators, critical components for batteries powering electric vehicles, energy storage systems, defence equipment, and digital infrastructure, will be produced. The facility is expected to create around 763 construction jobs and 635 jobs at the facility once operational.

“For more than 40 years, ENTEK has built a reputation for innovation, quality, and long-term partnerships with the world’s leading energy storage and technology companies,” said Larry Keith, Chief Executive Officer at ENTEK. “With I Squared’s capital, strategic expertise, and global network, we will expand the U.S.’s manufacturing footprint, create high-quality jobs, and meet surging demand for batteries across critical applications, from EVs and energy storage to military defence equipment and data centres.”

Gautam Bhandari, Managing Partner and Chief Investment Officer at I Squared Capital, added, “ENTEK exemplifies the type of critical, high-growth infrastructure platform that I Squared seeks to scale. ENTEK’s revenues are underpinned by long-term agreements with blue-chip clients, and its products are essential to U.S. re-industrialisation and energy security. With DOE support and rising demand in EVs, energy storage, and defence, ENTEK is uniquely positioned to deliver sustainable growth for our investors and the U.S. economy.”

About the Terre Haute, Indiana, facility

The new facility is set to produce 1.4 billion square metres of wet-process lithium-ion battery separators annually in its first two phases and is designed to expand to 2.1 billion square metres. Once achieved, this will position ENTEK as the only scaled, U.S.-based supplier that can meet the sourcing requirements for battery manufacturers to receive 45X production tax credits while also complying with the content requirements under the Inflation Reduction Act (IRA), as amended by the One Big Beautiful Bill Act (OBBBA), which reduces the allowance for Chinese materials, including separators.

On the new facility, Mike Braun, 52nd Governor of Indiana, said, “This first-of-a-kind gigafactory, built right here in Indiana, will increase energy production and bring down prices, all while boosting our local economy and creating well-paying jobs for hard-working Hoosiers.”

U.S. Senator Todd Young (R-Ind.) added, “ENTEK’s new facility highlights Indiana’s continued leadership in advancing U.S. manufacturing, strengthening America’s competitiveness, and creating quality Hoosier jobs.”

“Indiana continues to be a highly attractive place for businesses to invest, and ENTEK’s new factory is a strong testament to the power of investing in America’s security and competitiveness right here at home,” concluded U.S. Senator Jim Banks (R-Ind.).