FRANKFORT, Ky. — LioChem e-Materials LLC, a subsidiary of Toyo Ink SC Holdings Co. Ltd, will locate a new facility in Simpson County with a $104.4 million investment creating 141 quality jobs for local Kentuckians to support electric vehicle battery production.
The project, located at 310 Ronnie Clark Drive in Franklin, Kentucky, will help support the growing EV sector throughout Kentucky and the surrounding region. The new operation, located in a renovated building, will produce and distribute a liquid dispersion of carbon nanotubes that contributes to the production of more durable, high-capacity and higher-output EV batteries. The product will help improve the performance of lithium-ion batteries primarily used in EVs.
“Since 2021, the Toyo Ink Group has been supplying battery materials created at our manufacturing facility, LioChem, in the state of Georgia,” said Hideki Okaichi, executive operating officer of Toyo Ink. “North American demand for this essential material continues to grow rapidly. To meet projected future demand, we established LioChem e-Materials as our second battery material production in the United States. This new site is expected to bolster our regional and global supply chain further.”
LioChem is a leading manufacturer of quality printing inks, coatings and plastic colorants. Founded in 1988 as part of the worldwide Toyo Ink Group, LioChem merged dispersion technology systems from Japan with innovative manufacturing facilities in the United States to become a recognized industry leader. Emphasis on technology, education and extensive support services has led to a solid reputation for achieving customer satisfaction in highly competitive markets.
Kentucky continues to grow as a national leader in the rapidly growing EV market. Since June 2020, the commonwealth has seen nearly $10 billion in EV-related investments, with more than 8,900 full-time jobs announced by companies within the sector.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $4 million in tax incentives based on the company’s investment of $104.4 million and annual targets of:
- Creation and maintenance of 141 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $29 including benefits across those jobs.
Additionally, KEDFA approved LioChem for up to $200,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, LioChem can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.