Braskem Selected to Negotiate Terms of a Prestigious $50 Million Award from U.S. Department of Energy to Drive Electrification Revolution

Rhea-AI Summary

Braskem (NYSE: BAK) has been selected by the U.S. Department of Energy to negotiate terms of a $50 million award under the Bipartisan Infrastructure Law. This funding aims to expand Braskem's ultra-high molecular weight polyethylene (UHMWPE) production capabilities in La Porte, Texas, focusing on the lithium-ion battery separator (LIBS) market.

The project is expected to generate over 250 skilled jobs across various phases. Braskem's UHMWPE, sold under the trade name UTEC®, offers superior properties ideal for lightweight electric vehicle battery separators, potentially improving battery charging efficiency and reducing carbon emissions. UTEC also has applications in various industries including construction, agriculture, and transportation.

Positive

• Potential $50 million award from U.S. Department of Energy
• Expansion of UHMWPE production capabilities for lithium-ion battery separators
• Expected creation of over 250 skilled jobs
• Strengthening of U.S. lithium-ion battery value chain
• Potential for improved battery charging efficiency and reduced carbon emissions

Negative

• None.

Braskem’s UTEC^® - Accelerating the Future of U.S. Lithium-Ion Battery Manufacturing

PHILADELPHIA & HOUSTON--(BUSINESS WIRE)-- Braskem (B3: BRKM3, BRKM5, and BRKM6; NYSE: BAK; LATIBEX: XBRK), the Americas' leading polyolefins producer and a global pioneer in biopolymers, today proudly announces that the company has been selected by the U.S. Department of Energy’s Office of Manufacturing and Energy Supply Chains to negotiate terms of a $50 million award under the Bipartisan Infrastructure Law. This landmark funding would expand Braskem's ultra-high molecular weight polyethylene (UHMWPE) production capabilities in La Porte, Texas, specifically targeting the lithium-ion battery separator (LIBS) market.

Braskem's UTEC facility in La Porte, Texas (Photo: Business Wire)

Braskem sells UHMWPE under the trade name UTEC^® (“UTEC”). By driving innovation in UTEC technology, this project would strengthen the lithium-ion battery value chain in the United States and is expected to generate over 250 skilled jobs across engineering, procurement, construction, and start-up phases.

Mark Nikolich, CEO of Braskem America, Inc., commented, “Braskem is honored to be selected by the U.S. Department of Energy to negotiate this award as we look to help drive further momentum in U.S. battery manufacturing capabilities. This award would not only accelerate our ability to meet the growing demands of our North American clients but also solidify our commitment to powering the electrification revolution with domestically produced, world-class UHMWPE. This funding would be a critical catalyst for the ongoing growth and success of our clients.”

UTEC has superior chemical stability, corrosion resistance, tensile strength, thermal stability, and porosity, making it the ideal material for lightweight electric vehicle battery separators, helping improve battery charging efficiency and ultimately reducing carbon emissions. With a molecular weight roughly 10 times higher than standard high density polyethylene (HDPE) resins, UTEC also offers unparalleled performance across a wide range of additional demanding applications in the following industries: construction, agriculture, material handling, transportation, textile, pulp, and paper, food and beverage, mining, marine, porous plastics, oil and gas, high-performance fibers, and wastewater treatment.

To learn more about Braskem’s UTEC^® UHMWPE product portfolio please visit https://www.braskem.com/utec.

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.

ABOUT BRASKEM

With a global vision of the future oriented toward people and sustainability, Braskem is committed to contributing to the value chain for strengthening the Circular Economy. The petrochemical company’s almost 9,000 team members dedicate themselves every day to improving people’s lives through sustainable chemicals and plastics solutions. Braskem has an innovative DNA and a comprehensive portfolio of plastic resins and chemical products for diverse segments, such as food packaging, construction, manufacturing, automotive, agribusiness, healthcare, and hygiene, among others. With 40 industrial units in Brazil, the United States, Mexico, and Germany, Braskem exports its products to clients in more than 70 countries.

Braskem America is an indirect wholly owned subsidiary of Braskem S.A. headquartered in Philadelphia. The company is the leading producer of polypropylene in the United States, with five production plants located in Texas, Pennsylvania, and West Virginia, an Innovation and Technology Center in Pittsburgh, and operations in Lexington, MA focused on leveraging groundbreaking developments in biotechnology and advanced materials. For more information, visit www.braskem.com/usa.

Braskem on English social media:

www.facebook.com/BraskemGlobal
www.linkedin.com/company/braskem

FORWARD-LOOKING STATEMENT
This press release contains projections and other forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) regarding future events. These statements reflect Braskem’s current beliefs and expectations with respect to Braskem’s business, the economy and other future conditions and are based on assumptions, are subject to risk and uncertainties and are subject to change at any time. Actual events or results may differ materially from those contained in such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements contained herein include, without limitation: (i) the ability of Braskem and the U.S. Department of Energy’s Office of Manufacturing and Energy Supply Chains to reach acceptable award terms; (ii) the contraction or lack of growth in the lithium-ion battery separator market (iii) unexpected delays or other problems in production at Braskem facilities, (iv) increased competition from imports or in the export markets, (v) inability to anticipate future trends in the lithium-ion battery separator market and the future needs of Braskem’s customers, (vi) the impact of natural disasters on Braskem’s facilities, its suppliers and customers; (vii) the development of alternate products, and (viii) other factors detailed in documents Braskem S.A. files from time to time with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240923835464/en/

For press information, please contact:

Braskem North America

Stacy Torpey – (215) 841 3194 – stacy.torpey@braskem.com

Source: Braskem

FAQ

What is the value of the potential award Braskem (BAK) is negotiating with the U.S. Department of Energy?

Braskem is negotiating terms of a $50 million award from the U.S. Department of Energy under the Bipartisan Infrastructure Law.

How many jobs is Braskem's (BAK) UHMWPE expansion project expected to create?

The project is expected to generate over 250 skilled jobs across engineering, procurement, construction, and start-up phases.

What is the main application of Braskem's (BAK) UTEC® in the electric vehicle industry?

UTEC® is ideal for lightweight electric vehicle battery separators, potentially improving battery charging efficiency and reducing carbon emissions.

Where is Braskem (BAK) planning to expand its UHMWPE production capabilities?

Braskem plans to expand its UHMWPE production capabilities in La Porte, Texas.