Orbia will be the first company to produce lithium hexafluorophosphate for electric vehicles on a large scale in the United States.
Lithium hexafluorophosphate (LiPF₆) is used as an electrolyte salt in electric car batteries. It is dissolved in a mixture of solvents. Thus, it allows the passage of lithium ions between the anode and cathode. This movement is essential for the battery to work properly. It also improves fast charging. It also influences energy density and service life.
Lithium for electric vehicles
In October 2022, Orbia received a $100 million grant from the U.S. Department of Energy. This investment is part of the Infrastructure Act. The goal is to boost domestic production of batteries for electric cars and improve the electric grid. It also seeks to reduce dependence on imported materials.
Thanks to this aid, Orbia will build the first large LiPF₆ production plant in the United States.
According to Wards Intelligence, 78.9% of electric vehicles sold in the United States in the third quarter of 2024 were manufactured in North America. In comparison, only 7.3% came from South Korea and 5.3% from Germany.
Electric car sales in the country exceeded 1.3 million in 2024. This represents 7.3% growth versus the previous year, according to Kelley Blue Book data from Cox Automotive.
Orbia
Today, the United States does not produce LiPF₆ on a large scale. Virtually, all of the material arrives from Asia. Moreover, these imports are expensive. Thus, the lack of local production represents a risk for the lithium-ion battery supply chain.
To change this, Koura, part of Orbia, plans to open a plant in the country. This facility will produce up to 10,000 metric tons of LiPF₆ per year. With that capacity, it will be possible to supply more than 1 million electric vehicles.
In addition, the plant will have access to critical minerals. It will also have recycling and vertical integration. Thanks to this, it will be able to compete with imports and reduce foreign dependence. This will strengthen the domestic supply chain and boost the electric car industry in the United States.