US battery manufacturer Entek plans a $1.5bn, 340-acre greenfield factory in Terre Haute, Indiana to make lithium battery separator components for electric vehicles.

The US Department of Energy granted the project $200m as part of the Bipartisan Infrastructure Act, which became law in November 2021.

Entek aims to build four buildings on the 1.4 million sq ft site housing equipment made by Entek and Brueckner Group.

The plant will create around 640 high-wage jobs and allow Entek to supply up to 1.6 million vehicles a year.

Larry Keith, Entek’s chief executive, said: “We chose Terre Haute for many reasons including the excellent workforce opportunity, a nearly shovel ready construction site with available utilities located in an industrial park, excellent vocational education and the business-friendly incentives from both the state and local governments.”

The factory is due to begin operations between 2025 and 2027.