Enchem Becomes First Korean Materials Firm to Secure Deal with China's CATL... Supplying 350,000 Tons of Electrolyte

First Mega Long-Term Contract Between CATL and a Korean Materials Company

Enchem, a secondary battery electrolyte company, is set to become the first Korean battery material producer to sign a long-term supply agreement with Contemporary Amperex Technology Co. Limited (CATL), the world's largest battery manufacturer.

Exterior view of Enchem Georgia Plant located in the United States. Enchem

Enchem announced on December 23 that its board of directors has approved a five-year contract with CATL, a Chinese company, to supply a total of 350,000 tons of electrolyte. The supply period will run from 2026 to 2030, with an annual average of 70,000 tons, totaling 350,000 tons. The contract is valued at approximately 1.5 trillion won based on current market prices, which is more than four times Enchem's consolidated sales last year. The annual average supply volume of 70,000 tons significantly exceeds Enchem's annual electrolyte supply of about 50,000 tons last year. In terms of a single customer, this is the largest contract in the company's history.

While Korean battery companies have struggled to penetrate the Chinese market, Enchem's agreement to supply electrolyte for CATL's domestic Chinese production is highly significant. CATL holds a global electric vehicle (EV) battery market share of nearly 38%. The company supplies batteries to major automakers in China, North America, Europe, Southeast Asia, and other key regions.

Through this agreement, Enchem plans to expand its supply beyond China to CATL's new global production bases in Europe, the United States, Southeast Asia, and other regions.

The contract with CATL is structured so that production and supply are carried out at Enchem's Korean and overseas manufacturing sites according to the customer's global production facility requirements. As a result, the revenue from this contract will be recognized in Enchem's consolidated financial statements, including both its Korean headquarters and overseas subsidiaries. With full-scale electrolyte supply beginning in the second quarter of 2026, Enchem expects to generate more than 300 billion won in additional annual sales. There is also potential for further sales growth in Europe, North America, and Southeast Asia, in addition to the Chinese market.

An Enchem representative stated, "This contract is official recognition of Enchem's technological capabilities and global production capacity by the world's largest battery company. Based on our strategic cooperation with CATL, we will seek further opportunities to expand supply across the global market, including China, while continuing to pursue sustainable growth and enhanced competitiveness."