EDL, which is building the largest lithium salt (LiPF6) production facility in Korea, is currently in full-scale construction of the production building at the Saemangeum plant. On the 25th, Jungang Advanced Materials announced that EDL, a joint venture between Enchem and itself, completed all procedures for the construction of the production building earlier this month and has begun establishing the production facility.
Last August, EDL successfully held the groundbreaking ceremony for the Saemangeum plant, attended by Enchem's global customers such as LG Energy Solution, SK On, GM, and Panasonic. The Saemangeum plant is planned to have a lithium salt production capacity (CAPA) of 50,000 tons by the end of 2026, attracting significant attention from the industry.
Lithium salt is one of the key raw materials for electrolytes. Although it accounts for 10-15% of the composition, its domestic production rate is very low, making it an urgently needed material for localization efforts. Especially since Chinese companies are responsible for over 80% of global lithium salt production, concerns over supply have increased due to the implementation of the U.S. Inflation Reduction Act (IRA).
To maximize the benefits of the IRA, EDL aims to start full-scale product mass production in the second quarter of next year. Since the groundbreaking ceremony, EDL has recruited numerous experts to further enhance production efficiency and has held multiple technical partnering meetings with global top-tier lithium salt companies.
Preparations for stable facility construction have also continued. The Saemangeum site, with its geographical peculiarity as reclaimed land, is considered a highly challenging area for construction. To address this, EDL invited a separate expert committee and, after a strict review process, recently selected a construction company with a high level of understanding of the related site.
A company official explained, “Ahead of the full-scale construction of the production building, we established a cooperative system and conducted technical and business exchanges with Enchem’s joint venture, which is mass-producing lithium salt overseas, to reinforce our own technology line. Along with this, we have been carrying out various preparatory tasks, including step-by-step financial planning to secure construction funds.”
He added, “The industry expects a long-term lithium salt supply shortage in the North American region starting next year due to the IRA effect. EDL anticipates not only immediate captive sales through Enchem, which has already firmly established itself in the North American market, but also additional sales secured from the shortage caused by China.”
According to the industry, lithium salt demand based on total battery production capacity in the U.S. and Europe next year is estimated to reach about 180,000 tons. Of this, the demand for de-China lithium salt is estimated to be about 105,000 tons. Currently, the global lithium salt production capacity excluding Chinese companies is about 25,000 tons, which is far short even when combined with the production capacity planned by EDL.
Meanwhile, Enchem, which will be EDL’s largest future supplier, increased its product supply to North America by about 92% compared to the previous quarter in the first quarter of this year. Enchem is rapidly continuing investments regardless of market conditions to dominate the electrolyte markets in North America and Europe.
As a result of these achievements, Enchem secured new customers this year, including Tesla, Panasonic, and Ultium Cells Plant 2. Enchem also plans to supply products to the ‘BlueOval’ Kentucky plant, a joint venture between SK On and Ford, in the second half of this year. The company explained that as Enchem’s product supply volume in the captive market increases, EDL’s sales will also increase proportionally.
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