Lotte to Establish Electric Vehicle Battery Solvent Plant in Daesan Complex with 600 Billion KRW Investment

Investment Agreement for New and Expanded Factories with Chungnam Province and Seosan City on the 7th

Battery Electrolyte Organic Solvent Factory, EOA Expansion, etc.

Lotte Chemical Daesan Plant. (Source: Lotte Chemical)

[Asia Economy Reporter Moon Chaeseok] Lotte Chemical is investing about 600 billion KRW in the Daesan Petrochemical Complex in Seosan-si, Chungcheongnam-do to build an organic solvent factory for electric vehicle battery electrolytes.

On the 7th, Lotte Chemical announced that it signed an investment agreement for new and expanded factory construction with Chungnam Province and Seosan City at the Chungnam Provincial Office.

Lotte Chemical revealed that it will invest approximately 602 billion KRW on a 67,500㎡ site in the Daesan Petrochemical Complex in Seosan to establish a new factory for organic solvents used in electric vehicle battery electrolytes. It plans to build high-purity ethylene carbonate (EC) and dimethyl carbonate (DMC) factories and start mass production from next year. These two materials are organic solvents used in electrolytes, which are one of the four main components of lithium-ion batteries. Organic solvents have high growth potential, accounting for about 30% of the electrolyte cost, but currently rely entirely on imports, making domestic production necessary.

There are plans to build a 200,000-ton (t) scale carbon dioxide (CO₂) capture and liquefaction facility. After completing pilot operation of the CO₂ capture and utilization (CCU) facility, commercial production is scheduled for the second half of next year. The captured CO₂ will be used as raw materials for high-purity EC and DMC, organic solvent materials for electric vehicle battery electrolytes. Sales for external uses such as dry ice and semiconductor cleaning agents will also be pursued.

The production line for ethylene oxide derivatives (EOA), used as concrete raw materials in high-rise buildings and bridges, will be expanded to increase production capacity from 330,000t to 480,000t. Additionally, a 250,000t scale high-purity ethylene oxide (HPEO) production facility will be expanded to secure raw materials such as EOA, EC, and DMC. Furthermore, efforts will be made to improve raw material facility efficiency to increase the use of liquefied petroleum gas (LPG), a raw material for ethylene production, from the current 10% to 30%.

Through this investment, Lotte Chemical plans to concretize its goals of strengthening eco-friendly businesses and existing business competitiveness to achieve 'Vision 2030.' Hwang Jin-gu, head of Lotte Chemical's Basic Materials Business, who participated in the agreement ceremony, said, "Investments in battery electrolyte organic solvents and carbon capture businesses are important steps to realize Vision 2030," adding, "Since Chungnam Province and Seosan City have been long-term partners of the company, we will continue to strive for sustainable growth together with the local community."

Yang Seung-jo, Governor of Chungnam Province, said, "We will actively support Lotte Chemical, which invests in eco-friendly materials to respond to the climate crisis and achieve carbon neutrality, so that it can continue to grow in the Daesan complex and lead the Korean economy." Maeng Jeong-ho, Mayor of Seosan City, said, "We will advance as a hub for advanced chemical industries through administrative support for investing companies."

This content was produced with the assistance of AI translation services.