Jungang Advanced Materials Signs 5.3 Billion KRW Lithium Salt Supply Contract

Jungang Advanced Materials (formerly Jungang D&M) announced on the 12th through a public disclosure that it has signed a lithium salt supply contract worth approximately 5.3 billion KRW with global secondary battery electrolyte company Enchem. Previously, Jungang Advanced Materials signed a supply contract worth about 6 billion KRW with Enchem last month, securing orders exceeding 11.3 billion KRW in just two months.

According to industry insiders, the lithium salt worth approximately 5.3 billion KRW to be supplied this time will be used entirely in the United States. This is due to Enchem's expansion of its North American customer base and will be used in the manufacturing of electrolyte products supplied to customers.

A representative from Jungang Advanced Materials stated, "As previously announced, the lithium salt distribution business is expected to generate annual sales of around 100 billion KRW, so follow-up orders have come very quickly. Since the electrolyte sector benefits from the U.S. Inflation Reduction Act (IRA), continuous orders are expected."

He added, "As Enchem is rapidly expanding its market share in the U.S. and Europe, the pace of the lithium salt distribution business is also expected to accelerate. We will continue to do our best to grow performance and enhance corporate value through rapid development of the distribution business and leap forward as a leading global secondary battery company representing Korea together with Enchem."

Meanwhile, Jungang Advanced Materials plans to secure an annual production capacity of 10,000 tons of lithium salt by the end of next year through IDEL and aims to establish a total production facility of 50,000 tons by 2026. Additionally, it intends to proactively secure specialized distribution know-how and networks for lithium salt and commence swift business operations from the start of production.

Separately, Jungang Advanced Materials announced on the 30th of last month through a public disclosure that it had changed its company name to expand its business centered on secondary batteries and to enhance its corporate image.