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Evonik Breaks Ground on $220M Lipid Innovation Center

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Evonik, one of the world's leading providers of drug delivery technologies, broke ground on its $220 million global-scale production facility for pharmaceutical lipids in Lafayette, Indiana. Representatives of the federal government, the state government as well as local officials joined Evonik’s CEO Christian Kullmann and members of the company’s Executive and Supervisory Boards for the groundbreaking ceremony at Evonik’s Tippecanoe Laboratories.

“Our new Lipid Innovation Center will secure the health innovations of tomorrow. Through this investment we reinforce our leading position in the pharmaceutical industry. We are privileged to support the U.S. with pandemic preparedness and enable the development of cutting-edge medicines,” said Christian Kullmann, CEO of Evonik.

Evonik’s Lipid Innovation Center is being built on the grounds of the company’s site in Tippecanoe and will position Evonik for future growth in novel mRNA-based therapies beyond COVID-19 vaccines. The investment into the lipid facility will help create more than 80 highly skilled jobs in the Greater Lafayette region. An additional 300 contractor positions will be added over the project life cycle. Production is scheduled to start in 2025.

“Evonik’s decision to build this new facility, and add 80 high-paying jobs, in Indiana is reflective of our state’s highly trained workforce and the business-friendly environment we have worked to create,” said Indiana Governor Eric J. Holcomb. “We are proud to support this life science related project.”

The Lafayette-based site is preferred due to its existing infrastructure, skilled workforce, and readily available technologies. Evonik currently employs nearly 680 people at its Tippecanoe site – plus an additional 150 contractors that assist with maintenance and logistics. The facility is one of the world’s largest contract manufacturing facilities for active pharmaceutical ingredients (APIs) and Evonik's second-largest site in the U.S.

The total investment into the commercial-scale lipid facility amounts to $220 million. The U.S. government has entered a cooperative agreement with Evonik for a cost share of up to $150 million through its Biomedical Advanced Research and Development Authority (BARDA), a component of the Administration for Strategic Preparedness and Response (ASPR) in the U.S. Department of Health and Human Services (HHS). BARDA promotes the advanced development of medical countermeasures to respond to 21st century health security threats and coordinated acquisition assistance with the Department of Defense (DOD) Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defense (JPEO-CBRND). Additional support comes from the Indiana Economic Development Corporation (IEDC), Greater Lafayette Commerce (GLC), and Duke Energy.

“Evonik’s strategic expansion at Tippecanoe is fantastic news for the entire Greater Lafayette region,” said Scott Walker, president, and CEO of Greater Lafayette Commerce. “The Town of Shadeland, Lafayette, West Lafayette, Tippecanoe County, the Purdue Research Foundation, and Greater Lafayette Commerce all supported this effort and not only look forward to the high-value jobs it will create, but also the important role the new Lipid Innovation Center will play in our nation’s vaccine preparedness.”

During the COVID-19 pandemic, Evonik emerged as a key partner for leading vaccine producers in securing the availability of pharmaceutical lipids. These are molecules that make up the building blocks of living cells. In novel mRNA vaccines, they protect the messenger RNA (mRNA) and ensure its safe delivery into the cell. Lipids will also be crucial for future applications of mRNA technology in infectious disease control, cancer immunotherapy, protein replacement and gene therapy.

As a leader in advanced drug delivery, Evonik supports pharma customers worldwide with comprehensive services for developing and manufacturing complex parenteral and oral drug products from early development to commercialization.