27 December 2012

Mitsui Chemicals and Formosa Plastics form JV for Electrolyte Solution in China

- One of the main components of lithium-ion batteries
- Total investment will be approx. US$20 million

27 December 2012 - Mitsui Chemicals, Inc. (MCI) with its Head Office in Tokyo, Japan and Formosa Plastics Corporation (FPC) with its Head Office in Taipei, Taiwan announced that the two companies entered into an agreement to form a joint venture company in China to manufacture and distribute electrolyte solution, one of the main components of lithium-ion batteries. 

Bolstered by the growing smart phone and tablet device market, the need for lithium-ion batteries which provide large energy capacities in compact sizes has expanded significantly. 

Additionally, the market is further expected to grow in line with expansion of hybrid vehicle and electric vehicle use. Especially in China, demand for lithium-ion batteries is forecasted to grow dramatically with expanded market demands, including that for electric vehicles. 

Against this backdrop, MCI and FPC will take advantage of the two companies' technologies and expertise with electrolyte solution to target early establishment of manufacturing and distribution systems for high quality electrolyte solution to respond to accelerated demand of the Chinese market. 

The 50:50 joint venture will be located in the industrial complex of FPC Ningbo, China. In the first phase the capacity will be 5,000 tons/year and commercial operations will tentatively start in May 2014. Total investment will be approximately US$20 million.

Source: Mitsui Chemicals