Dongwha Electrolite Signs Lithium Salt Supply Agreement with PGT... "Strengthening Supply Chain Stability"

Responding to FEOC and AMPC
Strengthening Competitiveness in North America

Dongwha Electrolite announced on January 20 that it has signed an equity investment and raw material purchase agreement with PGT, a specialty precision chemical company. This decision aims to secure competitiveness in the North American market by internalizing key materials amid the ongoing supply chain reorganization.

Dongwha Electrolite has signed a contract with PGT to purchase lithium hexafluorophosphate (LiPF6), thereby strengthening its procurement base for essential raw materials. The company expects to reduce uncertainties in its supply chain, which has been highly dependent on overseas sources, by stably sourcing high-quality key materials from PGT's domestic production facility.

Dongwha Electrolite Tennessee Production Facility in the United States. Dongwha Electrolite

Through this partnership, Dongwha Electrolite aims to achieve "de-Chinaization" of its materials and secure a competitive edge in the North American market. Last year, the United States introduced the Prohibited Foreign Entity (PFE) requirements by strengthening the Foreign Entity of Concern (FEOC) regulations, making supply chain restructuring inevitable for local battery manufacturers. In response, Dongwha Electrolite is establishing a local production base using domestically produced raw materials. The company has built an electrolyte production capacity of 86,000 tons per year in Tennessee, United States.

Seung Jisoo, CEO of Dongwha Electrolite, stated, "Securing non-Chinese raw materials is essential under the Advanced Manufacturing Production Credit (AMPC) system, and we have ensured the supply chain stability demanded by our global clients." He added, "Even amid uncertainty, we will continue to seek opportunities and solidify our position as an irreplaceable partner."