Graphite and carbon composites materials supplier SGL Carbon is launching a $4.5 million expansion project at its Arkadelphia, AR plant to increase its capacity for carbon composites, the Arkansas Economic Development Corporation announced Thursday. The company also said it will create 35 new jobs.

“Composite battery enclosures fit perfectly to the specific needs of modern e-car chassis,” said Steve Swanson, vice president of operations for SGL Composites Inc., in a release. “Thus, with the ongoing enhancement of our Arkadelphia operations, we also support the great trend towards more e-mobility in the US.”

SGL Carbon’s Arkansas site also manufactures a range of carbon and glass fiber-reinforced products that are used in various industrial applications in the automotive, energy and aerospace industries.

Additional carbon composite products produced a the plant will be used in electric vehicles, the company said.

The expansion is expected to become operational by the end of this year. SGL Carbon currently operates 31 production facilities in Europe, Asia and North America.

Over the next seven years, the global market for composites is expected to grow at a CAGR of 7.6%, with growth in the US driven by demand for lightweight materials for vehicles, according to a recent forecast by Grand View Research.