Southern Va. Big Deal: Microporous’ mega project

Microporous’ decision to invest $1.35 billion to build a battery component plant in Pittsylvania County is a mega deal not just for the region but for the state.

“The company will create over 2,000 jobs in multiple phases and the potential is there for, frankly, additional job creation beyond that,” says Matt Rowe, the county’s economic development director for Pittsylvania County, which co-owns the Southern Virginia Megasite at Berry Hill with the City of Danville.

Announced in November 2024, Microporous’ project was the state’s biggest economic development win of the year, and a meaningful victory for Gov. Glenn Youngkin, who was criticized when he took Berry Hill out of the running in 2023 for a $3.5 billion Ford Motor Co. electric vehicle battery factory over concerns about a project partner’s ties to the Chinese government.

Youngkin nodded to that controversy at the groundbreaking ceremony, calling Microporous “an American company using American technology that will hire American workers and supply American companies.”

Based in Sullivan County, Tennessee, Microporous has produced separators for lead-acid batteries for more than eight decades, and at the Berry Hill facility, it plans to produce separators for lithium-ion batteries, which are used in electric vehicles and energy storage systems.
With wages averaging around $60,000, “that will allow folks to improve their standard of living and pay to send their children to college and also have more disposable income,” Rowe says.

The company’s presence is likely to attract other businesses to the region, creating a spin-off effect, says Linda Green, executive director of the Southern Virginia Regional Alliance and vice president of economic development of the Institute for Advanced Learning and Research.
The global market for battery separators is expected to grow from $8.1 billion in 2024 to $19 billion by the end of 2029, according to BCC Research, a Boston market research firm.

Microporous picked Pittsylvania, according to Brad Reed, the company’s vice president of corporate development, because it had the land and infrastructure to support the project, as well as state support.

Prior to landing the battery separator manufacturer, Berry Hill caught the eye of a few major companies, including Hyundai and Albemarle Corp., a chemical manufacturer headquartered in Charlotte, North Carolina, but none had popped the question, making Microporous the megasite’s first major tenant.

Youngkin, backed by the state legislature, has prioritized site preparation during his term and pumped more state funding into programs to get industrial sites “shovel-ready,” so businesses can set up shop within a year or two of announcements. Also, the Virginia Economic Development Partnership’s Virginia Talent Accelerator Program is available for many major projects, offering recruitment and training to companies at no cost for the first year.

Microporous will prepare a pad site for the first of two phases in the half of 2025 and begin construction in the third quarter of this year. The company’s goal is to have at least its first set of equipment operational by the end of 2026, says Reed.

In late 2024, Microporous began installing equipment at its Tennessee plant that will apply a coating to the separators to enhance lithium-ion battery safety and cycle life. It will go into operation in the first quarter of this year, allowing Microporous to produce marketing samples before the Pittsylvania County plant opens. Initial hires will train in Tennessee, so they’ll have hands-on experience once the Pittsylvania facility begins running, according to Reed.

In January, during the final days of President Joe Biden’s term, Microporous was formally selected for a $100 million grant from the U.S. Department of Energy designed to boost the renewable energy supply chain.

However, late in January, President Donald Trump ordered a temporary freeze on $3 trillion in federal spending, potentially affecting major economic development projects, along with nonprofit organizations and individuals. After an outcry and several lawsuits, leading to a temporary injunction, Trump’s administration rescinded the order. However, it’s unclear whether the White House intends to make another attempt to cancel federal funding awarded under Biden.

On the state side, Microporous is eligible to receive up to $60.6 million from the General Assembly’s Major Employment and Investment Project Approval Commission if it invests more than $1.3 billion. The Virginia Tobacco Region Revitalization Commission approved up to $25 million in low-interest financing to bring major natural gas service to the project.