Sepion Technologies has announced plans to build a lithium-ion battery separator manufacturing facility in the Capitol Innovation District, a 1 million square foot advanced biomanufacturing innovation district in West Sacramento, CA.
The project is supported by a $17.5 million grant from CALSTART and the California Energy Commission’s “PowerForward: ZEV Battery Manufacturing Grant Program.” The facility aims to address supply chain gaps and strengthen the domestic battery workforce, crucial for national security and the clean energy transition.
Battery separators currently face the largest domestic supply shortfall among battery components. A McKinsey & Company report projects a 54% deficit in domestic battery separator supply by 2030. Sepion’s new facility is expected to help bridge this gap by initially producing 50 tons of its proprietary polymer and 50 million square meters of coated separator annually—sufficient to power 50,000 electric vehicles. The company plans to significantly scale production in the years following the start of production, with the goal of becoming a leader in the separator market.
Sepion reports that its separator coatings are engineered to unlock significant $/kWh savings by improving the durability of low-cost, manganese-rich cathodes. These coatings are designed to reduce the migration of transition metals from the cathode to the graphite anode, enhancing performance. Additionally, the coatings are thinner and lighter than standard options, offering weight and space savings that translate into longer EV range. These advancements reportedly come with competitive safety performance and full compatibility with existing battery cell manufacturing processes.
Sepion chose the Capitol Innovation District for their new site, citing proximity to the Port of West Sacramento and the Bridge District—an emerging neighborhood with housing and a vibrant lifestyle—as a key factor in their decision. The facility layout is in place, with production slated to begin in 2027, following the completion of Phase I construction and process validation of Sepion’s manufacturing line. Sepion is also partnering with local organizations to train a local high-tech workforce, ensuring safe, efficient operations and benefits to the local community.
This announcement follows a series of recent milestones for Sepion, including the company’s UN/DOT 38.3 safety certification, the introduction of a non-flammable electrolyte, and the opening of its pilot facility in Alameda, CA. The West Sacramento facility represents a major step toward closing the domestic battery separator supply gap, while supporting broader goals of reducing greenhouse gas emissions, improving air quality, and promoting zero-emission vehicle adoption.
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