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EV battery parts company withdraws from $152M Haywood County project

The route leads to an empty piece of land earmarked for the I-40 Advantage Industrial Park in Brownsville, Tennessee. Enchem America, Inc. had intentions to set up a $152 million facility for producing electrolytes, aiming to create around 190 jobs in Haywood County. However, the company decided to withdraw from this commitment as of September 2025.

This South Korean manufacturer specializes in battery components, and its plans for the facility were initially announced in 2023 for the industrial park. The location is roughly 16 miles from BlueOval City, a substantial electric vehicle production campus associated with SK ON and intended for the manufacture of Ford’s new all-electric pickup trucks and batteries. This site is anticipated to serve multiple manufacturers, including BlueOval SK and other EV component suppliers.

The intended Enchem facility would have produced the electrolytes essential for electric vehicle batteries, possibly boosting the company’s capacity to back U.S. EV manufacturers.

Enchem’s decision to step back from the project came after “careful consideration and extensive review of North American business strategies,” as noted in their announcement.

Stewart mentioned that this choice was primarily influenced by shifting demand from their main North American clients. Enchem America has not provided any comments regarding this situation.

Such project cancellations emerge amid a continuous transformation within the electric vehicle landscape. For instance, Ford has announced delays in mass-production timelines, shifting them to 2028, although production of prototype trucks at BlueOval City is set to start in 2027.

Stewart indicated that his agency is in the process of discontinuing the state incentives originally allocated to Enchem, which had received a $2 million recruitment grant in 2023.

He emphasized collaboration with state officials and the Tennessee Valley Authority to prepare the industrial park for future development and ensure the site remains marketable.

While Enchem has completed initial site preparations, construction has yet to commence. Stewart pointed out, “It’s not that they’re abandoning the facility.” Although it may take time to relist the site, he noted ongoing interest due to its favorable location between Memphis and Jackson. The groundwork carried out as part of the state’s certified site program adds appeal.

Looking ahead, Stewart mentioned that the BlueOval City timeline indicates production in 2027, followed by mass production in 2028. Regardless of the next tenant, the site should remain attractive.

For further updates about this area’s future, information will be available during a Brownsville Haywood Economic Development Corporation board meeting on October 8th.

Stewart expressed he isn’t particularly worried about the uncertainties in the EV market, acknowledging that it is still evolving.

“It feels like the automotive industry is peering into crystal balls,” he remarked. He is navigating complex policies from Washington, alongside the intricate web of international supply chains affecting everything from rare earth metals to aluminum, tariffs, and trade agreements, all while attempting to map out the next 12 months.

He underscored the significant $5.6 billion investment in the BlueOval City campus, mentioning, “There are about 11 million square feet under that roof, with machines and equipment still calibrated, even though operations are currently slow.”

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