News Summary
Louisiana is rapidly developing as a crucial center for critical minerals and battery components in the U.S. with several facilities opening. Key projects include a $267 million rare earth processing plant by Ucore North America and graphite production by Syrah Technologies aimed at meeting increasing demands in electric vehicles and military applications. Additionally, substantial investments from chemical companies are set to bolster local manufacturing of essential battery components, enhancing the state’s role in reducing reliance on foreign imports of critical materials.
Alexandria, Louisiana – Louisiana is rapidly positioning itself as a significant hub for the production of critical minerals and battery components in the United States. This acceleration in development includes one facility already operational and seven more currently under construction, driven by a national initiative aimed at reducing reliance on foreign imports of essential materials.
The push for domestic production aligns with the policy strategy initiated during the Trump administration, which prioritized American mineral resources and manufacturing capabilities. An executive order signed on March 20 further emphasized the importance of increasing U.S. mineral production to enhance national security and reduce dependence on China for critical minerals.
Among the major developments in Louisiana, Ucore North America is establishing a $267 million rare earth processing facility at England Airpark in Alexandria, with an anticipated operational start in June 2026. This facility aims to produce rare earth metals at purities of 99.9%, suitable for applications in electric vehicles, wind turbines, and military technologies. By 2027, Ucore projects an output increase to 12,000 tons per year, creating approximately 100 direct and 298 indirect jobs.
In Vidalia, Syrah Technologies has commenced graphite production with a plan to supply Tesla with high-purity spheroid graphite starting in January 2025. Their facility is noted for being the only U.S. operation able to produce graphite with a purity level of 99.5%, essential for military and industrial needs. The demand for this product is expected to lead to further production expansions.
Alongside these plants, major chemical companies are investing close to $1 billion for the manufacturing of electrolyte salts and additional battery components throughout southern Louisiana. Three new electrolyte production plants are under construction: a facility in Jefferson Parish and two more in St. Gabriel and Geismar.
UBE Corp. is building a $491 million facility in Jefferson Parish dedicated to producing key battery components, benefiting from $80 million in tax incentives provided by local government. Additionally, Koura Global is retrofitting a St. Gabriel plant to produce lithium hexafluorophosphate (LiPF6) for lithium-ion batteries, with expectations to reach an output of 10,000 metric tons annually.
Honeywell is also in the process of constructing a facility to create lithium bis(fluorosulfonyl)imide (LiFSI), a vital ingredient for both lithium-ion batteries and large-scale energy storage solutions. This project has received $126.4 million in support from the Department of Energy. Element 25 is working on a facility in Burnside to refine manganese sulfate monohydrate for use in lithium-ion batteries, backed by a $166.1 million grant.
The ongoing exploration for lithium-rich underground brines in northeast Louisiana showcases the potential for local lithium extraction. The region is estimated to hold between 5 and 19 million tons of lithium in ancient brine deposits. In connection with these efforts, Exxon is investigating methods to extract lithium from brines in Arkansas and has already drilled its first well in the region.
With these advancements, Louisiana is not only enhancing its role in the critical minerals market but is also poised to create hundreds of new jobs while contributing to the broader goal of establishing a sustainable and self-reliant supply chain for battery components and critical minerals in the U.S.
Deeper Dive: News & Info About This Topic
- The Center Square: Louisiana Critical Minerals Hub
- Wikipedia: Critical minerals
- 1012 Industry Report: Battery Boom in Louisiana
- Google Search: Battery manufacturing in Louisiana
- USA Today: Lithium Deposit Under Arkansas
- Google Scholar: Lithium extraction methods
- Mining News North: Critical Minerals Alliances 2024
- Encyclopedia Britannica: Graphite
- Reuters: US Awards $3 Billion for Battery Manufacturing
- Google News: Critical minerals US
Author: STAFF HERE NEWORLEANS WRITER
NEW ORLEANS STAFF WRITER The NEW ORLEANS STAFF WRITER represents the experienced team at HERENewOrleans.com, your go-to source for actionable local news and information in New Orleans, Orleans Parish, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as French Quarter Festival, New Orleans Jazz & Heritage Festival, and Essence Music Festival. Our coverage extends to key organizations like the New Orleans Chamber of Commerce and Greater New Orleans, Inc., plus leading businesses in energy, healthcare, and education that power the local economy such as Entergy, Ochsner Health, and Tulane University. As part of the broader HERE network, including HEREShreveport.com, we provide comprehensive, credible insights into Louisiana's dynamic landscape.
