Orion expands in conductive additives for energy storage, cables

HOUSTON - Orion S.A. (NYSE:OEC) is expanding its business providing conductive additives for high-voltage cable compounds and battery energy storage systems (BESS), the specialty chemicals producer announced Wednesday. The company's strategic expansion comes as its stock trades near its 52-week low of $4.34, having fallen over 74% in the past year according to InvestingPro data.

The company has qualified its PRINTEX kappa 100 grade of acetylene black with a battery energy storage systems producer and has begun shipping product, according to a press release statement.

"We expect this segment to continue evolving into a meaningful business for us in 2026 and beyond," said Corning Painter, Orion's CEO.

Orion supplies carbon black additives manufactured through both furnace- and acetylene-based processes. The company noted these materials are priced more competitively than carbon nanotubes, an alternative technology.

The company highlighted its localized production strategy with facilities in France and Germany dedicated to conductive additives, along with a new factory under construction in the United States.

Dr. Adrian Steinmetz, Orion's global vice president for batteries, emphasized the importance of local production capabilities: "Local production for local consumption is vital. We are where our customers are operating and where they are making future investments."

The company's conductive additives have been qualified by leading suppliers in the wire and cable value chain, which Orion identified as a high-growth area within its Specialty segment.

Energy consultancy Wood Mackenzie forecasts $1.2 trillion in battery energy storage system investment will be required globally by 2034 to support the addition of more than 5,900 GW of new wind and solar capacity, according to information cited in the announcement.

Orion S.A. operates 15 carbon black production plants worldwide and four innovation centers, serving markets including tires, coatings, batteries and plastics.

In other recent news, Orion Engineered Carbons SA reported third-quarter earnings that did not meet Wall Street expectations. The company posted earnings per share (EPS) of $0.29, which was below the anticipated $0.32. Additionally, Orion's revenue came in at $450.9 million, falling short of the projected $452.44 million. These results highlight a challenging quarter for the company in terms of financial performance. While the stock initially reacted negatively, this report focuses solely on the earnings and revenue figures. Investors and analysts are closely watching these developments to assess the company's future performance.

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