An executive order from President Donald Trump seeking to halt all federal grants and loans has slowed the $1.5 billion project to build an ENTEK plant in southern Vigo County.
The plant would manufactures lithium-ion battery separators to be used primarily in electric vehicles.
Late last year, ENTEK received a $1.2 billion loan from the U.S. Department of Energy’s Loan Programs Office.
On Friday, Kim Medford, president of ENTEK Manufacturing, did not seem unduly phased by the government’s spending pause, saying she believes ENTEK’s loan will come through.
“We have just had to slow our project spending temporarily because our funding has been put on hold short term due to the executive order,” she said. “We do not think that this is anything but a short term bump in the road and our team and investors are fully committed to the project.”
Medford added, “We have been in conversation with the new DOE team and we are in line to get our loan reviewed for release, but we don’t know our place in line or exactly how long we will have to wait.
“We clearly fit within the manufacturing mandate; however, energy projects are getting released first,” she said. “You have probably noticed that several projects with DOE loan funding were released this week.”
She said construction proceeds at the site.
“Our first building shell is up and the roof is going on now,” Medford said. “We are not stopping work, just slowing. When complete we the project, [there will be] four buildings in the first two phases and we have room to do a third phase with two more buildings.”
Ground was broken on the project in September of 2023, when then-Indiana Gov. Eric Holcomb told Vigo County residents, “Welcome to the billion-dollar business club.”
Production was scheduled to begin later this year in Vigo County Industrial Park II, which is off U.S. 41 about 6 miles south of Interstate 70. When fully up and running, the plant would be responsible for approximately 650 high-paying jobs.
“I was disappointed to learn that the ENTEK project has been delayed,” said Terre Haute Mayor Brandon Sakbun. “However, I remain fully committed to collaborating with their leadership, as well as with our congressman and U.S. senators, to restore the project’s timeline.
He added, “We recognize the significant positive economic impact this project brings to both our community and frankly the state of Indiana. We will continue to work diligently to ensure its successful progress.”
Steve Witt, who as president of the Terre Haute Economic Development Corp. sold the ENTEK team on Terre Haute, agreed with Medford.