Microporous secures $100M federal grant toward $1.3B Pittsylvania plant

Microporous, the Tennessee company planning to invest $1.3 billion to build a battery separator manufacturing facility in Pittsylvania County, has been formally awarded $100 million from the U.S. Department of Energy, part of which will go toward the new plant.

The company was among seven businesses chosen in November 2023 to receive a combined $275 million from the federal government under the DOE’s Advanced Energy Manufacturing and Recycling Grant Program under the Bipartisan Infrastructure Law. Wednesday’s announcement means Microporous has progressed from being a “selectee” in the program’s first round to securing “awardee” designation after passing a “rigorous review and negotiation process,” according to the company’s announcement.

A Microporous spokesperson said Thursday that the DOE grant will be active over three years, starting April 1 and running through March 31, 2028. During that period, the company will submit expenses for reimbursement and receive payments.

Microporous plans to use the funding to build the $1.35 billion polyethylene lithium-ion battery separator production facility at the Southern Virginia Megasite at Berry Hill, and launch PE lithium-ion battery separator production at its home of Piney Flats, Tennessee.

The company expects to employ more than 2,000 workers as the first anchor tenant at the Southern Virginia Megasite, which is owned jointly by the City of Danville and Pittsylvania County through the Danville-Pittsylvania Regional Industrial Facility Authority. Microporous says it expects the plant to be fully operational in 2026.

According to the DOE, Microporous will provide 282 permanent jobs in Pittsylvania for “double-distressed coal and Justice40 communities,” an initiative started by the Biden administration that 40% of certain federal climate, clean energy, affordable and sustainable housing funding flows to disadvantaged communities. At least 85% of full-time employees are expected to be from local disadvantaged communities by the completion of the project.

Microporous also is eligible to receive the state Major Employment and Investment Project Approval Commission’s special appropriation of up to $60.6 million for the company’s investment of more than $1.3 billion and the creation of more than 2,000 jobs, subject to the approval of the Virginia General Assembly, according to a news release from the governor’s office. Additionally, the company is eligible to apply for state grants from the Port of Virginia.

Virginia Sen. Tammy Brankley Mulchi, R-Clarksville, is sponsoring a state Senate bill that would fund 20 annual installments to Microporous totaling $60.597 million, executing a memorandum of understanding between the company, the state and the Virginia Economic Development Partnership. The bill has been referred to the Senate Committee on Commerce and Labor.

Similar bills under consideration in the Senate and House of Delegates would establish 15 annual grant installments totaling $60 million for Micron Technology’s $2.17 billion expansion in Manassas, creating an expected 340 jobs. That company is set to receive up to $275 million in federal funding, U.S. Sens. Mark Warner and Tim Kaine announced in December 2024.