Jungang D&M Partners with Global Electrolyte Leader Enchem to Pioneer 'Lithium Salt' Business Opportunities

KOSDAQ-listed company Jungang D&M has selected the lithium salt (LiPF6) business, a key raw material for electrolyte, as a new business to enhance corporate value and drive business growth momentum, and announced that it signed a joint venture establishment agreement with global electrolyte company Enchem on the 17th.

Through this joint venture establishment, Jungang D&M plans to pioneer new business opportunities through the global supply chain of Enchem, a domestic electrolyte production specialist company with the No. 1 market share in Korea.

Jungang D&M stated that by building a strategic partnership with Enchem, it will play a key role in supplying lithium salt, a core raw material of electrolyte whose importance is gradually increasing in the rapidly growing secondary battery materials industry.

The strategic business alliance between Jungang D&M and Enchem is interpreted as a strategy for rapid response to the new wave in the secondary battery market, such as the U.S. IRA (Inflation Reduction Act) and Europe’s CRMA (Critical Raw Materials Act). It is explained that the needs of both companies align in solidifying the backward value chain of lithium salt, the core raw material of electrolyte, and electrolyte supply, which is a key material for secondary batteries.

Currently, the secondary battery market is facing an issue of leadership shifting from the China-centered supply chain?covering electric vehicles, secondary batteries, key materials, and raw materials?to the U.S. and Europe. Against this backdrop, the importance of key materials and raw materials for secondary batteries is gradually increasing.

Accordingly, Jungang D&M plans to lead the supply chain of key secondary battery materials, from lithium salt to electrolyte, in the rapidly growing U.S. and European markets through strategic business cooperation with Enchem. In this regard, both companies intend to establish a lithium salt factory in Korea through the joint venture and make it a strategic hub for global electrolyte supply.

Meanwhile, Enchem is known to be rapidly increasing orders from top-tier cell makers such as LG Energy Solution and SK On, as well as global OEMs, centered on its factory operations in Europe and the U.S., amid the increasingly fierce global secondary battery materials market. Taking this joint venture agreement as an opportunity, Enchem plans to secure not only its greatest strength in global electrolyte supply chain dominance but also a stable supply chain for lithium salt, the core raw material of electrolyte, thereby ensuring business stability and breaking the dominance of Chinese electrolyte companies.

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