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, will become the first Korean battery materials firm 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 approved a five-year contract with CATL of China 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. Based on current market prices, the contract is valued at approximately 1.5 trillion won. This amount is more than four times Enchem’s consolidated sales from the previous year. The annual average supply volume of 70,000 tons far exceeds Enchem’s 2023 annual electrolyte supply of about 50,000 tons. In terms of a single client, this is the largest contract in the company’s history.

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

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

The contract with CATL will involve production and supply from Enchem’s Korean and overseas manufacturing sites, according to the customer’s global facility requirements. Revenue generated under this contract will be recognized by Enchem’s Korean headquarters and overseas subsidiaries, and thus reflected in the consolidated financial statements of the parent company. With full-scale electrolyte supply beginning in the second quarter of 2026, Enchem expects to generate additional annual sales of over 300 billion won. There is also potential for further sales growth in regions such as Europe, North America, and Southeast Asia beyond the Chinese market.

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