Cabot Corporation is expanding its North American battery materials operations with a modified $50 million grant from the US Department of Energy, backed by another $75 million in company investment.
The funding will support a two-site expansion of advanced conductive additive production at Cabot facilities in Franklin, Louisiana, and Pampa, Texas, as the company moves to capitalize on rising demand from energy storage, artificial intelligence infrastructure, grid modernization and electrification.
The DOE grant redirects funding from a previously announced project in Michigan to the new brownfield expansion program, allowing Cabot to use existing manufacturing assets rather than build an entirely new facility.
“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.”
At its Franklin facility, Cabot plans to expand production of LITX advanced battery-grade conductive carbons. In Pampa, the company plans to establish the first commercial-scale production of carbon nanostructures (CNS), its most advanced conductive additive technology and part of the ENERMAX product family.
The company said both projects are expected to be operational by the end of 2028.
Cabot said the investments are aimed at strengthening domestic supply of critical conductive additives while supporting manufacturing and construction jobs in the United States. The company also expects the expanded platform to improve its ability to serve battery customers with localized supply across major global markets.
“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. Together with our technology leadership, broad portfolio, and established customer relationships, we believe these investments will strengthen our competitive position globally and advance battery materials as an increasingly important growth platform for Cabot.”
The company said the planned expansion reflects growing demand for advanced battery materials as energy storage systems scale and electricity needs rise across AI infrastructure, data centers, grid modernization and broader electrification.
Cabot cautioned that its projections regarding the expansion, future growth and expected returns are forward-looking statements subject to risks and uncertainties, including execution of the planned investments, market conditions, competition, raw-material and energy costs, regulatory requirements and broader economic and geopolitical developments.
