Dow announced the intent to invest in ethylene derivatives capacity on the U.S. Gulf Coast, including the production of carbonate solvents, critical components to the supply chain of lithium-ion batteries.

This investment supports growth in domestic electric vehicle (EV) and energy storage markets and builds on Dow's successful track record of growth projects, including the recent global alkoxylation capacity expansions expected to come online in the next two years in U.S. Gulf Coast and Europe.

Dow is collaborating with the U.S. Department of Energy (DOE) Office of Clean Energy Demonstrations (OCED) and was selected for award negotiations to establish a world-scale carbonate solvents production facility for lithium-ion battery production on the U.S. Gulf Coast. The project is supported by agreements with customers, including leading EV original equipment manufacturers and electrolyte manufacturers.

This facility will capture more than 90% of the carbon dioxide from the ethylene oxide manufacturing process and will utilize it to produce carbonate solvents needed for the electrification of vehicles and to strengthen the U.S. power grid through energy storage. This investment is in line with Dow and the U.S. government's goals to enable reduction of greenhouse gas emissions in the mobility and transportation sector by investing in supply chain resiliency for domestic battery and EV manufacturing.

"This announcement is an exciting proof point of Dow's Decarbonize & Grow strategy, paired with our MobilityScience capabilities and commitment to a sustainable future for the automotive industry," said Brendy Lange, Dow Industrial Solutions Business Vice President. "The support from the DOE is a critical enabler of this project, localizing the supply of low-carbon value-added products to help enable the clean energy transition while advancing the decarbonization of our own operations."

Carbonate solvents are an important component of the electrolyte inside lithium-ion batteries, which help to enhance battery performance and longevity, enabling the advancement and adoption of electric vehicle technology.