Jungang D&M Invests 5 Billion KRW in Lithium Salt Joint Venture with Enchem

KOSDAQ-listed company Jungang D&M announced on the 16th that it has made a primary investment of 5 billion KRW in the lithium salt (LiPF6) joint venture ‘IDEL’ together with Enchem, the world’s 4th largest electrolyte market share company. As a result, IDEL’s capital has expanded to a total of 10 billion KRW, and IDEL has laid the foundation to leap forward as the global No. 1 lithium salt company together with Enchem.

Jungang D&M and Enchem signed a contract in April to establish the lithium salt joint venture and have been negotiating with several domestic industrial complexes to secure factory sites. This investment was made to expedite contracts with domestic industrial complexes, and Jungang D&M and Enchem plan to continue making investments aimed at the success of the related business.

IDEL plans to produce lithium salt domestically and accelerate its entry into the North American lithium salt market by utilizing Enchem’s market position and supply chain in the United States. Currently, IDEL is also conducting close consultations with strategic partner companies to enhance the stability of lithium salt production and secure related technological capabilities early.

According to the industry, the global total lithium salt production capacity is expected to increase from about 280,000 tons this year to about 500,000 tons by 2025. In particular, the demand for lithium salt for electrolytes in the US and Europe is expected to reach about 160,000 tons in 2025, while lithium salt produced outside China is only about 21,000 tons, making it difficult to meet the demand in the US and Europe.

With the establishment of this joint venture, Enchem will complete vertical integration of the electrolyte value chain, and Jungang D&M will lead the global lithium salt business through new ventures, thereby establishing a structure that maximizes business synergy for both companies, the company explained.

A Jungang D&M official said, “IDEL plans to expand production capacity up to 100,000 tons regarding lithium salt production,” adding, “Since the expansion plans of global lithium salt companies excluding China are very minimal until 2025, IDEL will be able to secure a dominant position in the global lithium salt market after the expansion.”