Business Expansion Booms Statewide

expanding-in-state-business

New Investments in Sustainability and Energy Efficiency

Expansions add nearly 1,000 new jobs, secures 1,000 more

New Investments in Sustainability and Energy Efficiency

Tesla signed an offtake agreement for Syrah-produced active anode material (AAM) - used in lithium-ion batteries for the electric car sector.

When most people think of the energy transition, they picture solar panels and windmill turbines. But the global push to reduce greenhouse gas emissions is having a ripple effect not only in the energy sector, but in manufacturing as well.

In 2022, Two Louisiana companies announced expansions directly tied to the market shift toward sustainability, increasing capacity to produce electric vehicle battery materials and energy-efficient air conditioning compressors.

Louisiana Gaining Foothold in EV Battery Supply Chain

To meet the expanding electric vehicle market, the U.S. Infrastructure Act awarded Louisiana $320 million to boost the supply of essential EV battery components.

Syrah Technologies and Koura will attempt to leverage some of that funding to expand their current Louisiana operations. Syrah is constructing a new facility in Vidalia to expand its production of graphite-derived Active Anode Material (AAM). Meanwhile, Koura is building the first U.S. manufacturing plant for lithium hexafluoridephosphate (LiPF6) on the grounds of the company’s existing St. Gabriel site.

Syrah announced a $176 million investment in its central Louisiana AAM facility in February 2022. The expansion adds 180,000 square feet of building and processing space for equipment and systems for processing natural graphite into AAM. The expansion comes after Tesla Inc. signed an offtake agreement in December 2021 to provide AAM for use in batteries.

Koura’s new plant could solve a critical risk in the supply chain for lithium-ion battery production in the U.S., as there are currently no large-scale domestic producers of LiPF6 and all of it must be imported from Asia. Koura is expected to produce enough LiPF6 for the domestic production of more than 1 million electric vehicles per year.

“Louisiana has all the right elements for the development of new technology in the manufacturing sector, including a vision for sustainable development that aligns well with our values.”

- Shaun Verner, CEO - Syrah Resources

Alliance Compressors Announces $45 Million Capacity Expansion to Meet Energy-Efficient A/C Demand

Alliance Compressors LLC announced in February that the company is investing $45 million over the next two years to expand its compressor assembly facility to keep pace with increased global demand for energy-efficient air conditioning.

Alliance will create 78 direct new jobs while also retaining a total of 520 employees. The initiative will create 96 indirect jobs in the region, totaling 174 new jobs. The project is expected to create 55 construction jobs at its peak.

Alliance, a joint venture of Emerson, Trane Technologies, and Lennox Industries, will add a third production line to its 400,000-square-foot factory in Natchitoches as a result of the expansion. The company expects a 30% gain in efficiency and productivity as a result of the rearrangement of its manufacturing flow. 

To secure the capacity expansion in Natchitoches, the state offered the company a competitive incentive package that includes the services of LED FastStart. The company will also receive a $1 million performance-based grant to support equipment costs, utilizing the state’s Quality Jobs and Industrial Tax Exemption programs.

Alliance Compressors makes compressor products for the global air conditioning industry at its Natchitoches facility. (Alliance Compressors photo)