[Special Stock] Enchem Gains from US-China Tariff War... "Negotiating Electrolyte Supply with China While Securing US Production Facilities"

As the tariff war between the US and China escalates into a full-scale conflict, Enchem is showing strong performance. This is interpreted as being influenced by expectations of indirect benefits, as the company has secured production facilities in the US and is discussing electrolyte supply with Chinese companies.

As of 10:14 AM on the 11th, Enchem was trading at 74,550 KRW, up 5,350 KRW (7.73%) from the previous trading day.

Enchem is the only global battery company producing ESS in the US and has been supplying 100% LFP (Lithium Iron Phosphate) electrolyte since the end of last year. It is also in discussions to supply electrolyte to a top-tier ESS company in China.

Enchem currently supplies LFP-based electrolyte to global battery companies in both the US and China. It also has product competitiveness that meets a wide range of customer needs, including its existing main product line of NCM (Nickel Cobalt Manganese) series electrolytes.

Recently, the tariff war between the US and China has intensified. As a result, Enchem, which owns the largest production facility in the US, is expected to receive significant indirect benefits.

The US Donald Trump administration’s total tariff rate applied to China is reported to be 145%, higher than the previously known 125%. An additional 20% fentanyl rate is added on top of the existing 125%. In response, China has started imposing an additional 84% tariff on US imports as retaliatory tariffs.

Enchem currently operates an electrolyte production facility in Georgia, USA, with an annual capacity of 105,000 tons. It plans to expand this to 150,000 tons by the end of the year and secure a final production capacity of 200,000 tons by next year. Furthermore, by the end of 2027, it plans to build production facilities with a capacity of 250,000 tons each in Tennessee and Indiana, expanding its total electrolyte production capacity in North America to 700,000 tons.