Enchem's Aggressive Expansion in North American Secondary Battery Market... Smooth Progress in Market Share Growth

Global secondary battery electrolyte specialist Enchem announced on the 25th that it has consecutively secured product supply contracts with various global top-tier customers in the North American market, including K-battery companies such as LG Energy Solution and SK On.

Since establishing its local subsidiary, Enchem America, in 2019, Enchem has continued its bold “proactive investment” strategy and succeeded in establishing itself as a key material company in the North American secondary battery market. In 2020, Enchem purchased the Toyota plant site located in Georgia and completed its first North American factory within two years.

Through this, Enchem became the only domestic company at the time to establish a large-scale “local production-local supply” system. Having secured the market, Enchem rapidly grew based on its existing large-scale factory operation know-how and large-scale production capacity (CAPA) capable of immediate response, currently leading electrolyte supply within the North American market.

Enchem’s Georgia plant has an annual electrolyte production capacity of 40,000 tons, making it the largest electrolyte factory in North America. The site alone covers approximately 350,000 pyeong (1,141,000㎡), which is one-quarter the size of Yeouido. A 20,000-ton annual capacity NMP plant is also located here.

Enchem plans to initially expand the Georgia plant to an annual capacity of 100,000 tons by the end of this year. Subsequently, it aims to increase production capacity to a total of 200,000 tons by the end of next year, covering the entire North American region until the completion of the second plant currently planned for construction in the western region.

An Enchem official explained, “Enchem’s Georgia plant was the greatest competitive advantage that allowed Enchem to rapidly expand its market share in North America at an early stage,” adding, “To this day, the Georgia plant remains the only large-scale electrolyte factory in the North American market, serving as a strong entry barrier.”

He continued, “Recently, the Georgia plant has been receiving more attention in the market following the disclosure of detailed guidelines for the U.S. Inflation Reduction Act (IRA) Foreign Excluded Overseas Concern (FEOC),” emphasizing, “The already secured large-scale expansion site, automated processes, and unparalleled large-scale factory operation capabilities are invaluable assets unique to Enchem.”

Enchem’s Georgia plant began initial electrolyte supply to SK On’s Georgia plant in March last year and started supplying products to the Ohio plant of Ultium Cells, a joint venture between LG Energy Solution and GM, in August of the same year.

This year, Enchem is preparing to supply products to a Japanese battery company located in Nevada, BlueOval (Kentucky), a joint venture between SK On and Ford, and Ultium Cells’ second plant in Tennessee. Alongside this, Enchem is also pursuing a “pinpoint strategy” focused on the U.S. East and West coasts to establish a more efficient local production and supply system.

This reflects Enchem’s strategic intention to further segment the North American market and implement construction and expansion plans accompanied by customer-tailored sales strategies. The company explained that since it is currently securing early references through a first-mover advantage in the North American market, operational strategies will also become a crucial point going forward.

A company representative added, “Going forward, Enchem aims to rapidly expand its North American market reach under a site strategy centered on the main Georgia plant, covering the eastern, western, and northern regions,” and added, “In addition to the Tennessee plant currently underway, we are also considering building an additional electrolyte plant in Ontario, Canada.”