Global secondary battery electrolyte leader Enchem is currently conducting a 250 billion KRW public offering of convertible bonds (CB) to expand its presence in the North American market, while accelerating market share expansion in other key global secondary battery regions such as China and Europe.
On the 27th, Enchem announced that it has been finally selected as the electrolyte supplier for ESS (Energy Storage System) LFP (Lithium Iron Phosphate) batteries by a global battery manufacturer.
The company is a Japan-affiliated Chinese leading battery manufacturing specialist, operating production facilities and research and development (R&D) centers worldwide, including Japan, the UK, the US, and China. It produces batteries not only for ESS but also for electric vehicles (EVs), and counts various global automakers such as Nissan, Renault, Mercedes-Benz, and BMW among its customers.
According to the selection, Enchem will supply electrolytes corresponding to about 70% of the total ESS battery volume produced at one of the manufacturer’s factories. With the recent expansion of AI data centers increasing power consumption and thereby boosting ESS adoption, the company expects additional sales growth.
Furthermore, in January, Enchem established a strategic base in Lille, a northern industrial hub in France, to expand its market in Europe. This strategic base will operate as a temporary hub until the completion of the new Dunkirk plant and will serve as an advanced base for proactive market penetration, including discovering new customers in Europe.
Since May, Enchem has been pushing forward the construction of the new Dunkirk plant, aiming for operation by September next year. The Dunkirk plant plans to produce 150,000 tons of electrolyte annually, approximately 700 tons of recycled cathode active materials, and 20,000 tons of recycled NMP (R-NMP).
The Dunkirk plant is expected to become a new core hub for Enchem in Europe alongside its existing plants in Poland and Hungary. To further strengthen its market dominance in the European region, Enchem also plans to expand additional production capacity (CAPA) of 45,000 tons each at the Poland and Hungary plants.
An Enchem official stated, “We are continuing proactive responses to further solidify Enchem’s high market position in the global secondary battery market and maximize benefits in the post-chasm era. Achieving new orders and expanding customers in the China market, which is led by Chinese companies, is a result of Enchem’s consistent efforts and strategies.”
He added, “Going forward, Enchem plans to continue swift investments and strategic moves in the European and North American markets to strengthen market dominance. These efforts will yield greater results than others when the secondary battery industry enters another boom period.”
Meanwhile, Enchem’s 14th public offering CB subscription is ongoing until the 27th. Participation is possible through KB Securities and Daishin Securities. The conversion price is 140,800 KRW. The CB listing is scheduled for the 2nd of next month. Enchem plans to use the funds raised through the public offering for facility investments to respond to increased demand for electrolytes and other products in the US.
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