Canuck-backed Clarios to build $1B US plant

Clarios, the world’s largest manufacturer and recycler of low-voltage batteries, says it plans to invest up to $1 billion (C$1.39 billion) in a state-of-the-art critical minerals processing and recovery plant in the U.S.

The battery maker, which posted 2023 net income of $346 million on revenue of $10 billion, said Tuesday it has already completed preliminary site assessments and is eyeing Indiana, Texas or Utah as possible locations for this investment.

Headquartered in Glendale, WI, Clarios is owned by Toronto-based global investment firm Brookfield (70%) and Caisse de dépôt et placement du Québec (30%), that province’s largest pension fund. The battery maker has 16 manufacturing and distribution centres across the U.S.

The project — part of Clarios’ $6-billion energy manufacturing strategy — is expected to be backstopped by Washington’s advanced manufacturing tax credits.

“The new critical mineral processing and recovery plant will utilize cutting-edge technologies to extract antimony and other critical minerals from recycled materials, improving both the efficiency and sustainability of the recycling process,” the company said in a news release.

Antimony demand

Antimony, crucial to the production of ammunition, night vision goggles, infrared sensors and precision optics, is currently in high demand after China imposed export controls last September. Since then, price of the strategic metal has more than tripled.

Clarios said its strategy aligns with the U.S. government’s focus on bolstering its domestic supply of critical minerals.

“The administration has emphasized the importance of these minerals for national security and economic growth, as highlighted in recent executive orders aimed at increasing supply and reducing dependence on foreign sources,” it said.

“By investing in critical mineral processing and recovery, Clarios is supporting these national security priorities and contributing to the resilience of the U.S. supply chain.”

Clarios filed to go public on the NYSE in 2021 but later put that on hold due to macroeconomic pressures. Earlier this year, the company withdrew the listing plans, but raised $5 billion through a bond and loan deal. That created a $4.5-billion dividend for its owners.