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Cabot Corporation Selected for Award Negotiation for $50 Million from the U.S. Department of Energy to Support Domestic Battery Supply Chain

By: via Business Wire

First-Ever Commercial-Scale Carbon Nanotube and Conductive Additive Dispersions Facility in the U.S. for Batteries

Cabot Corporation (NYSE: CBT), a global specialty chemicals and performance materials company, announced it has been selected for an award negotiation of up to $50 million by the U.S. Department of Energy’s (DOE) Office of Manufacturing and Energy Supply Chains. This grant, part of the Bipartisan Infrastructure Law, will support Cabot’s development of a new U.S.-based manufacturing facility to produce battery-grade carbon nanotubes (CNTs) and conductive additive dispersions at commercial scale. These materials are critical to the domestic lithium-ion battery supply chain for electric vehicles (EVs) and the electrical grid, helping to reduce reliance on imports. The DOE grant will cover nearly 30 percent of the total projected $181 million investment required for the project.

Cabot plans to revitalize, retrofit, and restore a former automotive site located in Wayne County, Michigan into the first U.S. production facility for battery-grade CNTs and conductive additive dispersions. Cabot has partnered with the North American Building Trades Union (NABTU), the International Chemical Workers Union Council (ICWUC), and the Michigan Building and Construction Trades Council (MBCTC) to support this project which is expected to create hundreds of new construction and full-time manufacturing jobs. This new manufacturing operation will enhance the domestic supply chain for critical battery materials and thereby reduce reliance on foreign imports.

With a 140-year history of manufacturing excellence in the automotive supply chain, including over 15 years of experience supplying conductive additives to the battery industry, and with established relationships with leading battery makers, Cabot is well-positioned to help strengthen U.S. battery manufacturing capabilities. In addition to its existing production of battery-grade conductive additives and carbon nanostructures in the U.S., this investment in CNT and dispersion production will further enable Cabot to deliver localized, tailor-made solutions that meet the specific requirements of customers’ chosen battery chemistries, including domestic EV manufacturers.

“We are honored to have been selected for award negotiation by the U.S. Department of Energy, which will enable us to further our commitment and capabilities to supply critical materials for the EV battery market and will ultimately strengthen the U.S. battery supply chain,” said Sean Keohane, president and CEO, Cabot Corporation. “As a trusted materials innovator at the center of the energy transition, our conductive additives, along with our broader portfolio of advanced materials, play a key role in enabling this transition. This investment will not only help us scale our production of critical battery materials, but it will also benefit the community by creating high-quality green energy jobs. We look forward to working closely with the DOE and our partners to ensure the success of this important project.”

This investment highlights Cabot’s role as a critical player in the energy transition, providing innovative material solutions not only in battery technologies but also across the entire energy storage and management ecosystem. Cabot’s contributions extend beyond conductive additives, including aerogels for improved thermal management, metal oxides for cathode durability, and advanced carbons for fuel cell optimization, all vital for the next generation of sustainable energy technologies.

To learn more about Cabot’s battery materials technology, visit: cabotcorp.com/batteries.

About Cabot Corporation

Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company headquartered in Boston, Massachusetts. The company is a leading provider of reinforcing carbons, specialty carbons, battery materials, engineered elastomer composites, inkjet colorants, masterbatches and conductive compounds, fumed metal oxides and aerogel. For more information on Cabot, please visit the company’s website at cabotcorp.com.

About DOE’s Office of Manufacturing and Energy Supply Chains

MESC plays a critical and unique role in catalyzing investments in America’s energy future to support the re-shoring, skilling, and scaling of U.S. manufacturing across energy supply chains. MESC serves as the frontline of clean energy deployment and accelerates America’s transition to a resilient, equitable energy future through data-driven investments in manufacturing capacity and workforce development. Learn more at: www.energy.gov/mesc or LinkedIn.

Forward Looking Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in the press release regarding Cabot's business that are not historical facts are forward looking statements that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2023.

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