"Without China, It's Impossible"... Enchem Targets the Chinese Electrolyte Market, 60 Times Larger Than Korea's

Enchem is expanding its supply chain to the United States and Europe, leveraging the Chinese electrolyte market, which is 60 times larger than Korea's. More than half of its total sales are generated in China, and it has established itself as the only materials company in the United States to receive subsidy benefits.

At 2 p.m. on the 18th, during the "Korea Advanced Battery Conference 2025 (KABC)" hosted by battery market research company SNE Research at EL Tower in Seocho-gu, Seoul, Enchem CEO Oh Jungkang delivered a lecture on "Next-Generation Battery Electrolyte Business Promotion Strategy for Electrolyte Companies."

Electrolyte is a key material in secondary batteries, serving as the channel through which lithium ions move. It is a liquid that facilitates the movement of lithium ions between the cathode and anode.

At 2 p.m. on the 18th, Oh Jungkang, CEO of Enchem, gave a lecture on the topic "Next-Generation Battery Electrolyte Business Promotion Strategy for Electrolyte Companies" at the "Korea Advanced Battery Conference 2025 (KABC)" hosted by battery market research company SNE Research at EL Tower in Seocho-gu, Seoul. Photo by Shim Sunga

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According to Enchem's internal analysis, the global electrolyte consumption this year is estimated at 1.86 million tons in China, 70,000 tons in the United States, 40,000 tons in Europe, and 30,000 tons in Korea. Despite the domestic battery industry's challenges in breaking into the Chinese market, Enchem supplies electrolytes for electric vehicles (EVs) and energy storage systems (ESS) to leading Chinese battery companies such as Gotion and SVOLT. To date, Enchem has secured around 20 Chinese clients.

CEO Oh explained, "For over 10 years, I have personally visited China, communicating with the Chinese battery industry and building trust."

He added, "For a materials company, it is practically impossible to operate a battery business without China. Of this year's 80,000-ton production sales, more than 50,000 tons have been generated in China." He continued, "Next year, we expect to establish an even stronger presence, with over 150,000 tons produced within China alone."

Enchem is the only materials company eligible for the U.S. Advanced Manufacturing Production Credit (AMPC). The company has also secured local clients in Poland and Hungary and supplies electrolytes to a gigafactory in France. Enchem has applied for a C3IV tax credit of 10 million euros (approximately 16.38 billion won) for its French plant investment, with approval expected in September.

CEO Oh stated, "Currently, many customers are requesting electrolytes for cathode materials such as NCM (nickel-cobalt-manganese), LFP (lithium iron phosphate), and LMR (lithium manganese rich), but there is also significant demand for electrolytes for silicon-based materials." He explained, "More materials companies are trying to increase the silicon content to 50% or even 100%, and they are asking Enchem to develop suitable electrolytes." Enchem revealed that over the past four to five years, it has developed and supplied meaningful volumes of 100% silicon electrolyte for smartphone batteries.

CEO Oh identified safety, charging time, driving range, and lifespan as the most important battery requirements. He noted, "There is demand for electrolytes that enhance safety. We are already supplying electrolytes that enable a 300 km range with a 10-minute charge, and clients are now requesting electrolytes for batteries that can achieve 300 to 500 km with a 5-minute charge. The key factor here is safety."

He added, "We are developing our own strategies, communicating with clients, and focusing on meeting both price and performance targets. Every year, we receive government projects worth about 1 billion won and have increased our own research funding to nearly 20 billion won, actively pursuing development." CEO Oh also mentioned, "We have completed about 15 government projects so far, including the development of high-energy-density lithium secondary batteries and semi-solid batteries, and are now discussing mass production."

In conclusion, CEO Oh stated, "Now is the time to think beyond excelling and focus on survival strategies. With a global production capacity of 600,000 tons, we will continue to diversify our client base to boost our operating rate above 50% and produce more than 300,000 tons annually."

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