The federal government has recently allocated $150 million to support the development of a new facility in Orangeburg County that will produce graphite, a crucial component for the electric vehicle battery industry and energy storage market in the United States.
SKI US Inc., also known as Birla Carbon, is planning to establish a state-of-the-art synthetic graphite production facility that will not rely on any raw materials from foreign entities of concern. This initiative aims to enhance the domestic battery supply chain by providing approximately 25,000 metric tons of synthetic graphite annually to meet the growing demand in the U.S. for electric vehicles and energy storage solutions.
The specific location of this new production site has not been disclosed yet. However, the funding for this project is part of the Battery Materials Processing and Battery Manufacturing and Recycling Program, a larger initiative by the U.S. Department of Energy that has allocated $16 billion to support battery manufacturing, processing, and recycling projects across the country, including five projects in South Carolina.
The need for expanded domestic capacity using advanced technologies like the one proposed by Birla Carbon is evident, as highlighted in the news release. The traditional Acheson process, which is currently used to produce the majority of the world’s synthetic graphite in China, is considered outdated and environmentally unfriendly. By contrast, Birla Carbon’s innovative process has shown promising results, offering a 4% improvement in cell energy and power density while reducing energy consumption by 17%, cutting carbon dioxide emissions by 60%, and enhancing worker safety.
Furthermore, Birla Carbon’s existing 200-ton-per-year plant has already demonstrated the effectiveness of their novel graphitizing process in meeting the performance requirements for high-performance fast-charging batteries. By introducing this new technology into the U.S. supply chain, the country can reduce its reliance on foreign entities of concern and strengthen a critical segment of the battery sector’s mineral resources.
In addition to driving technological innovation and sustainability, this project is expected to generate numerous full-time and construction jobs, benefiting the local community. Birla Carbon is committed to completing the project efficiently and is seeking a Project Labor Agreement to ensure timely and budget-friendly construction. Moreover, the company aims to provide high-quality jobs that will contribute to the economic development of the region.
