Becomes Sole Largest Shareholder of Joongang Advanced Materials
"Enchem-Joongang Advanced Materials-EDL" Value Chain
Enchem, a secondary battery electrolyte company, is accelerating its efforts to secure a leading position in the next-generation battery market by internalizing the production of lithium salt, a key raw material for electrolytes. The company’s strategy is to integrate the entire process from raw material procurement to production and supply, thereby enhancing cost competitiveness and proactively responding to global supply chain regulations in North America, Europe, and China.
On December 26, Enchem acquired 5,850,320 shares of Joongang Advanced Materials, a company specializing in polyvinyl chloride (PVC) and lithium salts for secondary batteries, becoming the sole largest shareholder with a 14.53% stake. The complete incorporation of Joongang Advanced Materials as a subsidiary signifies that the lithium salt and electrolyte value chain-spanning Enchem, Joongang Advanced Materials, and EDL-is now fully integrated.
Previously, Enchem and Joongang Advanced Materials jointly invested in Saemangeum EDL, which is currently constructing a plant to produce LiPF6, a widely used lithium salt, with completion targeted for the fourth quarter of next year. Through this share acquisition, Enchem expects to generate synergy across the entire process from raw material procurement to production and supply, accelerating its efforts to strengthen cost competitiveness.
Enchem is also proactively addressing the market for lithium bis(fluorosulfonyl)imide (LiFSI), a next-generation lithium salt that is attracting significant attention beyond conventional LiPF6. On December 23, Enchem announced that it had invested 59.9 billion won to acquire a 100% stake in Shidai Sikang New Materials, a Chinese LiFSI producer.
LiFSI offers superior ionic conductivity and thermal stability compared to LiPF6, making it an essential material for high-power and high-safety batteries. Based on the LiFSI production capacity secured through this acquisition, Enchem plans to prioritize supply to battery manufacturers in China and Europe, and later expand its supply to the North American market, where demand for high-performance batteries is rapidly increasing.
This value chain integration is driven by the rapidly changing global trade environment. Starting in 2027, Enchem plans to establish a "China-independent value chain" centered on LiPF6 produced in Saemangeum and other locations, aiming to fully meet the requirements of the Inflation Reduction Act (IRA) in the North American market.
Furthermore, Enchem will use this restructuring of its corporate governance as a signal to push forward with the construction of a state-of-the-art LiPF6 production facility in the United States. The company expects to eliminate risks related to raw material supply instability while leveraging its unrivaled cost competitiveness to increase its market share in overseas markets such as North America and Europe.
An Enchem official stated, "This restructuring of our corporate governance is not merely a matter of adjusting shareholdings, but a strategic decision and a fundamental transformation process for Enchem to become a global top-tier company."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
