Cabot Corporation announced a multi‑year supply agreement with PowerCo SE, a leading European original equipment manufacturer in the electric‑vehicle battery sector, to supply advanced conductive carbons and conductive dispersions for use in lithium‑ion battery electrodes.
The deal positions Cabot as a leading supplier of high‑performance conductive materials in Europe, reinforcing its strategic pivot from commodity reinforcement materials to high‑value specialty chemicals. It is expected to contribute materially to the company’s performance‑chemicals revenue stream and support its broader battery‑materials strategy.
Cabot has invested heavily in battery‑grade conductive carbon capacity, including a $75‑$90 million expansion at its Pampa, Texas plant and a potential $50 million DOE award for a Michigan facility. The PowerCo contract builds on that investment and expands Cabot’s presence in the rapidly growing EV battery market.
While the announcement does not disclose the contract’s financial value or volume, the multi‑year nature signals a long‑term partnership that will likely generate steady revenue and support Cabot’s FY2026 guidance of $6.00‑$7.00 per share, below FY2025’s $7.25, reflecting a cautious outlook amid headwinds.
Jeff Zhu, executive vice president and president of Cabot’s Carbon & Silica Technologies, Battery Materials and Asia Pacific Region, said the agreement “positions us as one of the leading conductive materials suppliers in the European EV battery market and reflects the strength of our technology and our ability to scale production to meet growing global demand.” The partnership also aligns with PowerCo’s strategy to produce unified battery cells in Europe, giving Cabot access to a key customer for future cell production.
Cabot’s Q4 FY2025 results showed adjusted EPS of $1.70 and net sales of $899 million, both down year‑over‑year, while the performance‑chemicals segment saw an 18% EBIT increase. The PowerCo deal is a positive tailwind that could help offset these headwinds and support Cabot’s broader battery‑materials strategy.
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