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Local content requirements for electric vehicle (EV) manufacture in the United States is creating a flurry of activity to establish local production capabilities for a variety of core components. One of the more recent announcements came from North Carolina Governor Roy Cooper, who stated that Japan’s Dai Nippon Printing (DNP) plans to construct a $233 million battery pouch plant in Linwood, NC. DNP is the world’s leading supplier of battery pouches.

The lithium-ion battery pouches for EVs are fabricated from a flexible composite film that is “made into a bag or tray shape.” A safety valve function stops blow out of the outer package caused by increased internal pressure from gas releases while simultaneously preventing electrolyte leakage.

DNP has developed and produced pouches for smartphones, tablets, and laptops for more than three decades, designing light, low-profile pouches that resist heat and vibration, protect from water, and extend battery life. Pouches for EVs were a natural progression.

Gov. Cooper met with DNP executives on an economic development trip to Tokyo in October. The governor discussed the growing clean energy sector in North Carolina and encouraged DNP to choose Davidson County.

“My meeting with DNP in Tokyo . . . was productive, and I’m grateful they are building their EV battery pouch manufacturing facility in North Carolina, which is yet another sign of our growing clean energy economy,” said Cooper. “We welcome them to Davidson County, where we know they will find a world-class workforce and an excellent quality of life to support their new operation.”

DNP’s project will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $691 million. Using a formula that considers the tax revenues generated by the new jobs, the JDIG agreement authorizes potential reimbursement to the company of up to $2,741,400 spread over 12 years. State payments only occur following performance verification by the departments of commerce and revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue for the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.