EDL, which is conducting a large-scale domestic lithium salt (LiPF6) localization project in Saemangeum, Korea, is set to secure a foothold in the North American market based on Enchem's powerful global customer supply chain. On the 17th, Jungang Advanced Materials announced that EDL, a joint venture (JV) with Enchem, is pushing forward with the establishment of a joint venture with Enchem America for a local lithium salt business in the United States.
Starting next year, the effect of Enchem's early entry into the North American market is expected to be maximized. The company explained that they plan to produce and supply lithium salt, a key raw material for electrolytes, locally to quickly capture the related market. According to industry sources, due to the U.S. Inflation Reduction Act and the tightening of Foreign Entity of Concern (FEOC) regulations, a gap is expected to emerge as Chinese companies, which were major manufacturers of existing lithium salts, face restrictions.
EDL plans to build its own lithium salt production facility with a capacity of about 30,000 tons on the site of Enchem's first North American plant in Georgia. Detailed design is expected to be completed by the end of the first quarter of next year, with full-scale construction beginning in the third quarter. The facility will apply Enchem's chemical know-how, latest technology, and processes, with completion planned for the end of 2026.
With EDL's local production in North America, Enchem is also expected to gain strong business synergy effects. Enchem will be able to procure lithium salt at a competitive price, up to about 30% cheaper, while securing supply safety for key raw materials. Additionally, it will enable a more proactive and efficient response system to local customer demand in North America.
Through the localization plan for the lithium salt plant, the company claims it can achieve two goals: “enhancing trust with North American customers through a secure raw material supply base” and “agile preemptive response to policy changes in North America.” Especially since the related business is conducted locally in the U.S., it can also implement cost minimization strategies such as reducing logistics expenses and leverage economies of scale.
EDL, poised to become a leading domestic lithium salt company, is actively continuing factory construction in the Saemangeum National Industrial Complex. EDL plans to start full-scale lithium salt production next year, with all produced lithium salt supplied to North America. EDL will respond to global demand initially through the Saemangeum production facility and then expand market share more aggressively with the North American production facility.
A company official explained, “The secondary battery materials market is undergoing a major transformation due to institutional influences such as the IRA and FEOC, with supply chains previously dominated by China shifting to the North American region.” He added, “Major secondary battery cell makers in North America also hope to receive 'stable' supplies of raw materials that are decoupled from China.”
He continued, “Enchem is expected to establish a dominant position in the North American market by 2026, and the company is making every effort to achieve this,” adding, “Jungang Advanced Materials and EDL, based on Enchem as the most reliable demand source, will challenge the global market in the lithium salt (LiPF6) field as emerging strong players in the shortest possible time.”
Meanwhile, according to industry sources, the global lithium salt market is expected to expand in scale due to increased demand for electrolytes centered in North America.
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