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.
PUSHBACK FROM NEIGHBORS
UBE and Cornerstone saw pushback from residents in Waggaman and River Ridge last fall when it sought approval from the Jefferson Parish Advisory Board to move forward with the project. Neighbors packed into planning meetings to oppose the application, which originally sought to expand industrial zoning to within 10 feet of the surrounding homes.
Cornerstone later amended the application to remove the expansion and only construct UBE's facility on its preexisting campus, but residents still shared concerns that an additional chemical manufacturer on the site could pose threats to their health and safety. Many said they lacked trust in Cornerstone after previous controversies, like when its tenant Dyno Nobel built a boiler on the campus without proper permits.
The planning board voted to recommend approval in October after twice deferring a decision, and the Parish Council unanimously approved it a month later. The Louisiana Department of Environmental Quality granted an air permit in December.
UBE said Thursday it would donate a total of $50,000 to six West Bank organizations, including Cherbonnier/Rillieux Elementary School, L.W. Higgins High School, Joseph A. Cuillier Sr. Career Center, Waggaman Community Foundation and the Live Oak Manor Volunteer Fire Department.
FUTURE OF ELECTRIC VEHICLES
UBE is one of at least six companies to announce plans to build or expand EV materials manufacturing facilities in Louisiana since 2022, bringing with them a total investment of $2.4 billion and over 600 jobs.
But the future of government support for the industry is in question as President Trump suspends federal support for climate and green energy projects, including an immediate pause on billions of dollars in funding for EV charging stations nationwide.
His executive order, titled "Unleashing American Energy," did indicate support for building a domestic supply chain for EVs, specifically on raw minerals for batteries.
Yura said the company did not receive federal tax credits for the Waggaman facility. He added he's unconcerned about Trump policies affecting the new site because consumers will still dictate the market on electric and hybrid vehicles.
"I do believe if I take a look at the free market, the people will drive the decisions," Yura said.
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