Orion to build new production plant for acetylene-based conductive additives

Orion Engineered Carbons S.A. (Luxembourg) announced plans to build the only plant in the U.S. producing acetylene-based conductive additives – a critical link in the value chain for lithium-ion batteries, high-voltage cables and other products powering the global transition to electrification and renewable energy. Orion’s planned facility in La Porte, Texas, south of Houston, will be backed by a long-term agreement for acetylene supplied from a neighboring site owned by Equistar Chemicals LP, a subsidiary of LyondellBasell. Acetylene is a colorless gas widely used as a chemical building block. Orion’s production process turns acetylene into a powder, which is added to lithium-ion batteries, enhancing electrical conductivity and extending the lifetime of the most valuable component of an electric vehicle. The material plays a similar role in high-voltage cables used for wind and solar farms. Orion will invest between $120 million and $140 million in the facility, expected to start up in the second half of 2024. The investment should increase the company’s conductive additives capacity by approximately 12,000 metric tons per year (m.t./yr). The company, which has a similar plant in France with locally supplied acetylene gas from LyondellBasell, is the sole producer of acetylene-based conductive additives in the European Union.