Cabot Corporation (CBT) has announced that the U.S. Department of Energy (DOE) has selected them for an award negotiation worth up to $50 million. This funding, part of the Bipartisan Infrastructure Law, will support Cabot in establishing a new manufacturing facility in the United States dedicated to producing battery-grade carbon nanotubes (CNTs) and conductive additive dispersions on a commercial scale. These materials are essential for the domestic lithium-ion battery supply chain, powering electric vehicles (EVs) and the electrical grid, and reducing reliance on foreign imports. The DOE funding will cover approximately 30% of the project’s anticipated total investment of $181 million.
Cabot plans to revitalize, retrofit, and restore a former automotive site in Wayne County, Michigan, transforming it into the first U.S. production facility for battery-grade CNTs and conductive additive dispersions. The company has partnered with the North American Building Trades Union, the International Chemical Workers Union Council, and the Michigan Building and Construction Trades Council to support this project. This endeavor is expected to generate hundreds of new construction and full-time manufacturing jobs.
This new manufacturing operation will significantly strengthen the domestic supply chain for vital battery ingredients, thereby reducing dependence on foreign imports. The investment highlights Cabot’s commitment to the energy transition, providing groundbreaking material solutions not only in battery technologies but also across the energy storage and management ecosystem. Beyond conductive additives, Cabot’s contributions extend to aerogels for enhanced thermal management, metal oxides for cathode durability, and novel carbons for fuel cell optimization – all crucial components for the next generation of sustainable energy solutions.
Over the past year, Cabot’s shares have surged 62%, outperforming the industry’s 1.4% decline. Looking ahead, Cabot anticipates fiscal 2024 adjusted earnings per share between $7.00 and $7.10. This range represents a 30-cent increase at the midpoint, driven by anticipated improved results in the Performance Chemicals segment due to higher demand and a more favorable product mix compared to the first half of the year, along with continued strong performance in the Reinforcement Materials unit.
