Enchem "Targeting North American Market to Achieve 3.6 Trillion KRW Sales by 2025"

Global secondary battery electrolyte specialist Enchem announced on the 12th that the expansion plan for its key production facility in Georgia, USA, is progressing smoothly. Enchem aims to achieve annual sales of approximately KRW 3.6 trillion by 2025, when major bases in the US, China, and Europe will be expanded.

This represents about a 30-fold increase compared to total sales in 2020 and about seven times higher than the previous year. To achieve this, Enchem plans to supply products directly not only to global cell makers but also to global original equipment manufacturers (OEMs).

Currently, Enchem owns its own electrolyte production facilities in the US (Georgia), China (Huzhou and Zaozhuang), and Europe (Poland). Recently, it has been actively pursuing expansion work in line with local customer needs and production increase plans. The intention is to build even stronger partnerships with global top-tier customers through this.

In particular, Enchem is focusing on expanding production capacity in the North American market, as the US is expected to lead the external growth of the global secondary battery materials market over the next decade.

Due to the US Inflation Reduction Act (IRA), the secondary battery material supply chain, previously dominated by China, is rapidly being reorganized around the US. Accordingly, Enchem plans to expand its business rapidly with the US as the center.

Enchem plans to expand its Georgia plant, which currently has a production capacity (CAPA) of 20,000 tons, to 40,000 tons within this year. Subsequently, through additional expansions, it aims to increase production capacity to a total of 200,000 tons by the end of 2024. In 2025, when global cell makers’ production facilities are completed, Enchem also plans to establish a 100,000-ton production facility in Texas.

Through this, Enchem will have a total electrolyte production capacity of 300,000 tons in the US alone by 2025. With proactive expansion and market share growth, Enchem expects to generate approximately KRW 1.8 trillion in sales in North America alone by 2025.

An Enchem official stated, “We are currently focusing all efforts on expanding global production capacity as well as expanding our customer base,” adding, “We are actively engaged in discussions not only with top-tier cell makers but also with the world’s number one electric vehicle company and global OEMs such as General Motors (GM).”

He continued, “From 2025, when the use of Chinese minerals will be virtually banned in North America, Enchem will become the biggest beneficiary of the IRA,” adding, “Based on an annual production capacity of 300,000 tons, we expect to supply about 10 out of approximately 11 cell makers in the North American market, including K-battery companies, demonstrating an overwhelming market share.”

Enchem also expects a significant restructuring of its sales structure. Previously, more than 50% of sales were generated from China, which drove Enchem’s quantitative growth. From 2025, the US and Europe are expected to account for 65% of total sales, amounting to approximately KRW 2.25 trillion.

Meanwhile, Enchem estimates that sales of about KRW 1.2 trillion will be generated from 2025 when the expansion plan underway in the Chinese market is completed. Enchem currently has a production capacity of about 120,000 tons, including the third plant in Zhangjiagang, China, which will be completed within this year.