News Summary
Enchem America Inc. has canceled plans for a $152.5 million battery manufacturing facility in Brownsville, Tennessee, which was expected to create 190 jobs. The cancellation follows a shift in demand from key North American customers. While site grading began, no construction occurred, leading to the dismantling of the project’s PILOT incentive. Local officials express disappointment but remain hopeful for the BlueOval City project, which aims to create thousands of jobs in electric vehicle production despite recent delays.
Tennessee – Enchem America Inc., a company based in South Korea, has officially canceled its plans for a $152.5 million battery manufacturing facility in Brownsville. The proposed facility was intended to produce electrolytes for electric vehicle batteries and was projected to create 190 jobs in the region.
Aaron Stewart, Executive Director of the Brownsville-Haywood Economic Development Corp., confirmed the cancellation of the project. Although site grading for the facility had begun, no actual construction had taken place. Enchem has yet to respond to inquiries regarding the reasons for its decision to withdraw.
On September 26, Stewart informed Haywood County officials that Enchem decided to retract its involvement in the BlueOval project, which was integral to Ford’s broader strategy for electric vehicles in Tennessee. The company cited a “shift in demand from [their] key North American customers” as the driving factor behind its strategic adjustment.
As a result of the cancellation, the project’s Payment-in-Lieu-of-Taxes (PILOT) incentive will be dismantled. The Haywood-Brownsville Industrial Development Board plans to address the details surrounding Enchem’s withdrawal in a meeting scheduled for October 8.
The facility was set to be located at the Interstate 40 Advantage Industrial Park, situated close to Ford’s BlueOval City campus in Stanton. The site covers 160 acres and has been certified by the Tennessee Department of Economic and Community Development (TNDEC). Earlier, in June 2023, the Haywood-Brownsville Industrial Development Board had approved a 10-year PILOT agreement for this site.
Enchem America Inc. was established in 2012 and specializes in the production of electrolytes for electric vehicle batteries. The company currently operates a facility in Georgia to support its operations in North America.
Ford’s BlueOval City project represents a substantial $5.6 billion investment aimed at creating over 6,000 jobs through the Tennessee Electric Vehicle Center and the BlueOval SK battery plant. However, the project has faced setbacks, including Ford’s announcement in June that mass production of electric vehicles will be delayed until 2028, while prototype builds remain scheduled for 2027.
The delays are also impacting the joint venture BlueOval SK, which is still expected to begin battery production in 2027 at the BlueOval City site. In light of the recent news regarding Enchem, local officials and community members have expressed disappointment over the loss of job opportunities. Despite this setback, Mayor David Livingston remains optimistic about the long-term prospects of the BlueOval City project, noting the rapid technological advancements in battery production.
Deeper Dive: News & Info About This Topic
- Commercial Appeal
- Action News 5
- Fox 13 Memphis
- Daily Memphian
- Tennessee Lookout
- Wikipedia: Electric Vehicle Battery
- Google Search: Enchem America
- Google Scholar: Brownsville Tennessee Economic Development
- Encyclopedia Britannica: Battery
- Google News: Enchem cancels Brownsville project
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