FRANKFORT, Ky. (Jan. 28, 2022) – Today, Gov. Andy Beshear announced Quadrant will build a new $95 million-plus rare-earth magnet manufacturing operation in Louisville, its first mass production facility in the U.S., which will create 200 full-time jobs for Kentuckians.
“As electric vehicle production continues to ramp up across the automotive sector, we will continue to see growth of EV-related companies in the commonwealth,” Gov. Beshear said. “This investment and job creation will position Quadrant to capitalize on a burgeoning market, and I am thrilled to welcome the company’s growth in Kentucky.”
Quadrant, which has operated an engineering, machining and assembly hub in Louisville since 2001, will construct a 171,000-square-foot, rare-earth magnet manufacturing operation. It will be the company’s first production facility in the U.S. The new location builds on the company’s goal to build a world-class magnetics, manufacturing and research campus and positions the company and community as leaders in attracting a critical and innovative industry back to the U.S.
Rare-earth magnets are a type of permanent magnet made from alloys of rare-earth elements produced by Quadrant for use in electric vehicle motors and other automotive applications, consumer electronics, and within the medical, alternative energy and appliance industries, among others.
The construction of this state-of-the-art manufacturing campus, known as Project NeoGrass by Quadrant leaders, positions the industry for further growth in the U.S.
“We believe Project NeoGrass is the blueprint that the magnetics industry and our customers need,” said Michael Brand, president of Quadrant. “It is a revitalization of rare-earth manufacturing and research and development in the U.S.”
Founded in 1992, Quadrant is headquartered in San Diego, California, with operations in the U.S., Australia, China, Germany, Japan, South Korea and Vietnam. The company also operates a research, prototyping and testing facility in Silicon Valley. Quadrant works with high-tech companies from concept to mass production of magnet-related products, including material selection, engineering and design services and prototype development.
Louisville Mayor Greg Fischer said the project positions the community for future growth.
“We are excited about this major commitment from Quadrant to establish a research and manufacturing campus around advanced technologies here in Louisville,” Mayor Fischer said. “As we look at the future of automotive manufacturing, this investment continues to solidify the Louisville region as a national hub for EV technology and positions our city for the future of technology.”
LG&E and KU President John R. Crockett III said the utility provider is proud to be a partner in creating economic growth in the area.
“LG&E and KU are proud to be the energy provider of Quadrant’ facilities in Jeffersontown,” Crockett said. “Our partnerships with our customers, Louisville Forward and the Cabinet for Economic Development are important to the growth and well-being of Greater Louisville. We join Gov. Beshear and Mayor Fisher in celebrating Quadrant’s expansion and enhanced commitment in our community.”
Quadrant’s investment and planned job creation furthers recent economic momentum in the commonwealth, as the state builds back stronger from the effects of the COVID-19 pandemic. Two announcements made Friday bring total new investment for the week to approximately $291.8 million with over 1,200 jobs announced.
In 2021, the commonwealth shattered every economic development record in the books. Private-sector new-location and expansion announcements included a record $11.2 billion in total planned investment and commitments to create a record 18,000-plus full-time jobs across the coming years. Kentucky’s average incentivized hourly wage for projects statewide in 2021 was $24 before benefits, a 9.4% increase over the previous year.
In September, Gov. Beshear, Ford Motor Co. Executive Chair Bill Ford, CEO Jim Farley and Dong-Seob Jee, president of SK Innovation’s battery business, announced the single largest economic development project in the history of the commonwealth, celebrating a transformative $5.8 billion investment that will create 5,000 jobs and places Kentucky at the forefront of the automotive industry’s future.
Kentucky also saw an all-time, record-setting budget surplus in fiscal year 2021 and enters 2022 with an estimated $1.9 billion more than budgeted.
In addition, Kentucky recently placed seventh overall in Site Selection magazine’s annual Business Climate Rankings. The commonwealth ranked third nationally in the 2020 projects per capita ranking and fifth in the 2021 Prosperity Cup rankings, positioning the state among the national leaders for business climate.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $3.4 million in tax incentives based on the company’s investment of $95.2 million and annual targets of:
- Creation and maintenance of 200 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $28.15 including benefits across those jobs.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, Quadrant can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.
For more information on Quadrant, visit Quadrant.us.
A detailed community profile for Jefferson County can be viewed here.
Information on Kentucky’s economic development efforts and programs is available at CED.ky.gov. Fans of the Cabinet for Economic Development can also join the discussion at facebook.com/CEDkygov, on Twitter @CEDkygov, Instagram @CEDkygov and LinkedIn.