I Squared Capital Acquires Majority Stake in ENTEK to Reshore Critical U.S. Battery Manufacturing

September 17, 2025 at 09:00 AM EDT

$800 Million Investment Powers America’s First Gigafactory for Lithium-Ion Separators, Strengthening American Supply Chains and Economic Security

I Squared Capital (“I Squared”), a leading global infrastructure investment manager, today announced it has signed a definitive agreement to acquire a majority equity interest in ENTEK Technology Holdings LLC (“ENTEK”), a leading global manufacturer of battery separators.

I Squared’s $800 million investment complements a loan from the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) program of up to $1.3 billion. With initial funding already provided, these combined investments underscore the importance of strong public-private collaboration in securing U.S. domestic manufacturing of strategic technologies.

The investment will fund construction of a gigafactory in Terre Haute, Indiana – the first and only facility of its kind in the U.S. producing wet-process lithium-ion battery separators, critical components for batteries powering electric vehicles, energy storage systems, defense equipment, and digital infrastructure. The facility is expected to create approximately 763 construction jobs and 635 operations jobs in Terre Haute once operational.

Larry Keith, Chief Executive Officer, ENTEK, said: “For more than 40 years, ENTEK has built a reputation for innovation, quality, and long-term partnerships with the world’s leading energy storage and technology companies. With I Squared’s capital, strategic expertise, and global network, we will expand the U.S.’s manufacturing footprint, create high-quality jobs, and meet surging demand for batteries across critical applications, from EVs and energy storage to military defense equipment and data centers.”

Commenting on the investment, Gautam Bhandari, Managing Partner and Chief Investment Officer, I Squared Capital, said: “ENTEK exemplifies the type of critical, high-growth infrastructure platform that I Squared seeks to scale. ENTEK’s revenues are underpinned by long-term agreements with blue-chip clients, and its products are essential to U.S. re-industrialization and energy security. With DOE support and rising demand in EVs, energy storage, and defense, ENTEK is uniquely positioned to deliver sustainable growth for our investors and the U.S. economy.”

Over the last four decades, ENTEK has developed and built a resilient, vertically integrated business model based on core capabilities in energy storage, advanced materials, and equipment manufacturing. Supported by Endeavour Capital and Joshua Green Corporation’s investment in 2019, ENTEK has grown its operations across eight countries and is the only company to have expanded the application of advanced materials to include all battery separator types, including lead acid, lithium, and other emerging energy storage technologies.

The company’s patent-protected wet process method for lithium-ion battery separators is designed to protect workers, communities, and the environment, while providing strong regulatory and performance advantages. With a substantial majority of its revenue underpinned by long-term contracts, ENTEK is strategically positioned to scale and capture the significant market opportunity for batteries in the U.S., particularly against an uncertain global battery supply chain and a policy environment that prioritizes the onshoring of strategic manufacturing capabilities.

Mike Braun, 52^nd Governor of Indiana, said: “This first-of-a-kind gigafactory, built right here in Indiana, will increase energy production and bring down prices, all while boosting our local economy and creating well-paying jobs for hard-working Hoosiers.”

U.S. Senator Todd Young (R-Ind.) said: “ENTEK’s new facility highlights Indiana’s continued leadership in advancing U.S. manufacturing, strengthening America’s competitiveness, and creating quality Hoosier jobs."

U.S. Senator Jim Banks (R-Ind.) said: “Indiana continues to be a highly attractive place for businesses to invest, and ENTEK’s new factory is a strong testament to the power of investing in America’s security and competitiveness right here at home.”

The Terre Haute, Indiana project, which will be executed in partnership with Clayco as the EPC contractor and Brueckner Group, the world leader in biaxial stretching equipment, will produce 1.4 billion square meters of wet-process lithium-ion battery separators annually in its first two phases and is designed to expand to 2.1 billion square meters. The investment will position ENTEK as the only scaled, U.S.-based supplier able to meet the sourcing requirements for battery manufacturers to receive 45X production tax credits and comply with the content requirements under the Inflation Reduction Act (IRA), as amended by the One Big Beautiful Bill Act (OBBBA), which reduce the allowance for Chinese materials – including separators. ENTEK’s product will provide a significant advantage to battery manufacturing customers seeking credits under the OBBBA.

In addition to the DOE’s up to $1.3 billion ATVM loan, the project has secured more than $200 million in 48C advanced manufacturing tax credits for Phase One of the project and will be eligible for ongoing 45X production tax credits in Phase Two.

The transaction is expected to close following regulatory approvals.

Advisors

William Blair served as the exclusive financial advisor for ENTEK. Troutman Pepper Locke and Holland & Knight served as ENTEK’s legal advisors.

Kirkland & Ellis served as legal counsel for I Squared.

About ENTEK

ENTEK has 40 years of experience producing battery separators for batteries to support electric, advanced start-stop and standard vehicles, trucks, emergency vehicles, emergency backup power, utility scale energy storage, and industrial batteries. ENTEK has nearly 25 years of experience as the only U.S. owned and U.S. based producer of ‘wet-process’ separators for lithium-ion batteries and continues to invest in the future of the domestic lithium-ion battery industry. ENTEK is also a vertically integrated designer and manufacturer of extruders and material handling equipment for the production of battery separators and many other non-ENTEK applications.

About I Squared Capital

I Squared Capital is a leading global infrastructure investor managing $50 billion in assets. We build and scale essential infrastructure businesses that deliver critical services to millions of people worldwide. Our portfolio includes over 90 companies operating in more than 70 countries and spanning sectors such as energy, utilities, digital infrastructure, transport, environmental and social infrastructure. Headquartered in Miami, our team of over 300 professionals is based across offices in Abu Dhabi, London, Munich, New Delhi, São Paulo, Singapore, Sydney and Taipei. Learn more at www.isquaredcapital.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250917446749/en/

Contacts

Contacts

I Squared Capital

Dominic McMullan / Shelly Hagan

info@isquaredcapital.com

ENTEK

Larry Keith / Kim Medford

liadmin@entek.com

Media Contact

Brunswick Group

Alex Yankus / Cara Paley

isquared@brunswickgroup.com

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I Squared Capital Acquires Majority Stake in ENTEK to Reshore Critical U.S. Battery Manufacturing

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