I Squared Capital, an infrastructure investment manager, announced that it has entered into a definitive agreement to acquire a majority equity interest in ENTEK Technology Holdings, a manufacturer of battery separators.
I Squared’s $800 million investment is paired with a loan of up to $1.3 billion from the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing (ATVM) program. 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 the construction of a gigafactory in Terre Haute, Indiana, which will produce 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 generate approximately 763 construction jobs and 635 operations jobs in Terre Haute once operational.
Executed in partnership with Clayco as the EPC contractor and Brueckner Group, the Terre Haute, Indiana project is expected to 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 per year.
Phase One of the project secured more than $200 million in 48C advanced manufacturing tax credits and will be eligible for ongoing 45X production tax credits in Phase Two.
“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,” said Larry Keith, Chief Executive Officer, ENTEK.
According to Mercom’s 1H and Q2 2025 Funding and M&A Report for Energy Storage, in the first half of 2025, there were three M&A transactions in the energy storage sector, down from 14 in the first half of 2024.
In July, Lyten, a lithium-sulfur battery developer, announced the acquisition of Dwa Energy Storage System (ESS) manufacturing operation in Gdansk, Poland, from energy storage solutions provider Northvolt. The financial terms of the acquisition have not been disclosed by either party and are expected to close in Q3 2025.
