A Japanese chemical company began construction recently on a $491 million production facility in Jefferson Parish that will make electric vehicle battery ingredients, the first plant of its kind in the United States. UBE Corporation will build a facility on Cornerstone’s campus in Waggaman to manufacture dimethyl carbonate and ethyl methyl carbonate, two solvents commonly used in EV batteries and semiconductors, despite pushback from neighbors in recent months over environmental concerns.
Company leaders say the project will decrease U.S. reliance on Chinese imports.
“All these battery manufacturing facilities in the U.S. … they’ll be able to source all this stuff domestically, which means a shorter supply chain, a more cost-effective supply chain and better integration in the U.S.,” said Tom Yura, chief operating officer and site director of UBE’s American subsidiary.
At Thursday's groundbreaking were Japanese Consul-General Shinji Watanabe, UBE President Masato Izumihara, Cornerstone President and CEO Matthew Sokol and several local business leaders and elected officials.
The ceremony, which showcased Japanese culture, featured a line of traditional Japanese drummers outside the entrance and a Kagamari-wari sake ceremony for attendees. UBE also co-sponsored a Japan Festival with Cornerstone and Gray Construction last fall in City Park.
The plant is expected to begin operations in 2027 and create nine permanent jobs, as well as 47 contractor positions through Cornerstone. The construction is expected create 400 temporary jobs.
The project will receive an $80 million tax break over the next decade through the Industrial Tax Incentive Program after being approved by the Jefferson Parish Council, School Board and Sheriff’s Office last year.
"This project helps us take another pivotal step towards enhancing the Jefferson Parish economy and reinforcing our role as a global player in the emerging energy cluster,” Parish President Cynthia Lee Sheng said in a statement.