Sepion Technologies Secures $17.5 Million to Build Advanced Battery Separator Manufacturing Facility

Sepion Technologies, a leader in battery materials innovation, announces plans to build a cutting-edge lithium-ion battery separator manufacturing facility in the Capitol Innovation District, a 1 million square foot advanced biomanufacturing innovation district in the heart of West Sacramento. Backed by a $17.5 million grant from CALSTART and the California Energy Commission’s "PowerForward: ZEV Battery Manufacturing Grant Program," the facility will address key supply chain gaps and bolster the domestic battery workforce—both of which are crucial for national security and the clean energy transition.

Battery separators face the largest domestic supply shortfall of all battery components. A recent McKinsey & Company report projects a 54% deficit in domestic battery separator supply by 2030. Sepion’s new facility will help bridge this gap, initially producing 50 tons of its proprietary polymer and 50 million square meters of coated separator annually—enough to power 50,000 electric vehicles. The company plans to scale production significantly over subsequent years after start of production, with the goal of becoming a leader in the separator market.

Sepion’s separator coatings are engineered to unlock outsized $/kWh savings by improving the durability of low-cost, manganese-rich cathodes. These coatings 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 both weight and space savings that translate into longer EV range. Importantly, these advancements come with competitive safety performance and full compatibility with existing battery cell manufacturing processes.

“We are excited to launch this transformative project to address the domestic battery separator supply gap with the support of the CEC and CALSTART,” said Peter Frischmann, CEO and Co-Founder of Sepion. “With this facility, we’re advancing the clean energy transition, creating jobs to solidifying California’s position as a leader in sustainable manufacturing, and showcasing how American battery innovation can scale from lab to factory.”

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 significant 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 the broader goals of reducing greenhouse gas emissions, improving air quality, and promoting zero-emission vehicle adoption.

Sepion Technologies |www.sepiontechnologies.com