$125 million boost takes advanced battery materials toward US-scale production

US specialty chemicals company Cabot Corporation is putting $125 million into expanding advanced battery material production, with a $50 million Department of Energy grant supporting the push. The company will produce conductive carbons and carbon nanostructures designed to improve the performance of next-generation batteries at facilities in Louisiana and Texas. The investment combines the DOE grant with about $75 million from Cabot. The company plans to expand production at its existing facilities in Franklin, Louisiana, and Pampa, Texas, rather than build entirely new sites. The projects are expected to be operational by the end of 2028 and are aimed at rising demand from energy storage, grid modernization, electrification and power-hungry AI infrastructure and data centers. Carbon materials power batteries Conductive additives are materials added to battery electrodes to help create pathways for electrical current. They can improve the conductivity of an electrode, allowing batteries to make more effective use of their active materials. Cabot plans to expand production of its LITX advanced battery-grade conductive carbons at the Franklin facility. At Pampa, it will establish what it says will be the first commercial-scale production of carbon nanostructures, or CNS. The CNS technology is part of Cabot’s ENERMAX product family and represents a more advanced class of conductive additives in the company’s portfolio. The two materials are intended to serve different battery manufacturing requirements as energy storage systems become larger and battery designs evolve. “This investment represents an important step in our strategy to build a differentiated battery materials business that supports some of the most significant growth trends shaping the global economy,” said Sean Keohane, president and chief executive officer of Cabot Corporation. “Demand for advanced batteries continues to expand across energy storage, electrification, and emerging AI-related infrastructure. By leveraging our existing manufacturing assets, we can efficiently expand our battery materials platform, strengthen our position in the North American battery ecosystem, and support our customers’ growth with localized supply.” The DOE funding originally supported a Cabot project in Michigan. The modified grant redirects that funding toward the two-site brownfield expansion in Louisiana and Texas. Using existing manufacturing assets could allow Cabot to expand its domestic production capacity while making use of infrastructure already at the two locations. Battery demand drives expansion The timing of the investment reflects several industries placing greater demands on batteries and electricity infrastructure. Energy storage systems are expanding alongside renewable power and grid upgrades. At the same time, data centers supporting AI workloads require increasing amounts of electricity, creating additional demand for power infrastructure and storage technologies. Cabot says its conductive additives are designed to support these applications by improving battery performance. The company has decades of experience producing specialty carbon materials and already supplies battery manufacturers around the world. Its portfolio includes conductive carbons, carbon nanotubes and carbon nanostructures. The expansion will also strengthen domestic production of battery materials in the US. Cabot expects the projects to support manufacturing and construction jobs while creating additional capacity for customers operating in the North American battery supply chain. “Cabot is a trusted partner and technology leader in conductive additives for the battery industry, delivering innovative solutions backed by a global manufacturing footprint and technical expertise,” said Keohane. “These investments reinforce our commitment to the North American battery market and position us to be a reliable, long-term supplier as our customers scale production.” At Franklin, the expanded LITX production will target battery-grade conductive carbons. At Pampa, the new CNS facility will move Cabot’s carbon nanostructure technology into commercial-scale manufacturing. Both projects are scheduled to become operational by the end of 2028, giving Cabot additional US capacity as demand for advanced battery materials grows. Get the latest in engineering, tech, space & science - delivered daily to your inbox.With over a decade-long career in journalism, Neetika Walter has worked with The Economic Times, ANI, and Hindustan Times, covering politics, business, technology, and the clean energy sector. Passionate about contemporary culture, books, poetry, and storytelling, she brings depth and insight to her writing. When she isn’t chasing stories, she’s likely lost in a book or enjoying the company of her dogs.