Jungang Advanced Materials "Global Company Acquisition Imminent... Becoming Korea's No.1 and a Global Top-Tier Lithium Salt Company"

EDL, a joint venture between Jungang Advanced Materials and Enchem, announced on the 22nd that a global company acquisition to accelerate its lithium salt (LiPF6) production business is imminent.

The company EDL is pursuing to acquire is a subsidiary of a global non-ferrous metal manufacturer listed on the Shanghai Stock Exchange. If EDL acquires this company, it is expected to secure top-tier lithium salt manufacturing and production capabilities not only domestically but also globally.

The company reportedly has an annual lithium salt production capacity (CAPA) of over 8,000 tons. Since the company can generate annual sales of approximately 150 billion KRW, acquiring it would allow EDL to reflect the sales in its financial statements.

Additionally, it will be possible to secure production capacity for lithium fluoride, the raw material for lithium salt. The company also possesses advanced recycling technology for by-products generated during the lithium salt manufacturing process. Lithium waste liquid produced during lithium salt manufacturing can be mixed and separated with fluoride waste liquid to produce lithium fluoride. Through this, the company expects to secure significantly superior cost competitiveness compared to competitors.

A company official stated, “It is no exaggeration to say that the global lithium salt market is monopolized by Chinese companies,” adding, “While about 80% of the lithium salt produced worldwide is made in China, lithium salt is classified as a critical mineral under the United States’ Inflation Reduction Act (IRA), which demands decoupling from China.”

He continued, “Since Chinese companies have high manufacturing know-how for mass production of lithium salt, if the acquisition succeeds, EDL can rapidly leap to become the number one domestic and a global top-tier company,” adding, “In particular, it is expected to create great synergy with the large-scale lithium salt manufacturing project being established in the Saemangeum National Industrial Complex.”

Meanwhile, according to market insiders, lithium salt demand in Europe and North America excluding China is expected to reach about 160,000 tons by 2025. On the other hand, global lithium salt production excluding China is only about 21,000 tons, which is expected to cause a supply shortage.

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