Dow (NYSE: DOW) has announced its intention to invest in ethylene derivatives capacity on the U.S. Gulf Coast, with a focus on producing carbonate solvents, crucial components for the lithium-ion battery supply chain. This investment is geared towards supporting the growth of the domestic electric vehicle (EV) and energy storage markets, leveraging Dow's successful track record in growth projects, including recent global alkoxylation capacity expansions set to commence operations in the next two years in the U.S. Gulf Coast and Europe.

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

The planned facility will capture over 90% of the carbon dioxide from the ethylene oxide manufacturing process and utilize it to produce carbonate solvents essential for vehicle electrification and reinforcing the U.S. power grid through energy storage. This investment aligns with Dow's and the U.S. government's objectives to reduce greenhouse gas emissions in the mobility and transportation sector by investing in supply chain resiliency for domestic battery and EV manufacturing.

Brendy Lange, Dow Industrial Solutions business vice president, commented, "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." Lange emphasized the critical role of DOE support in facilitating the project, localizing the supply of low-carbon value-added products to drive the clean energy transition while advancing Dow's own decarbonization efforts.

Carbonate solvents play a vital role in the electrolyte composition of lithium-ion batteries, enhancing battery performance and longevity, thus promoting the advancement and adoption of electric vehicle technology. This investment will expand Dow's high-performing MobilityScience™ portfolio to address challenges in the mobility industry, such as decarbonization and improving EV performance.

In parallel with the investment, Dow is committed to enhancing the local community. The company plans to collaborate with new and existing partners to promote the growth of diverse suppliers, workforce development and education, economic development, and address infrastructure needs at the local and state levels.

Dow (NYSE: DOW) stands as a premier materials science company globally, catering to customers across burgeoning markets like packaging, infrastructure, mobility, and consumer applications. Dow's expansive global reach, integrated assets, considerable scale, innovative focus, prominent market positions, and dedication to sustainability empower us to attain profitable expansion and contribute to building a sustainable future. The company operates manufacturing facilities in 31 nations and has a workforce of around 35,900 employees. In 2023, Dow generated sales of roughly $45 billion.