South Korean electrolyte producer Enchem Company plans to build a KRW600bn (US$468m) lithium salt processing plant in Saemangeum, on the country’s south west coastline.
Electrolytes, derived from lithium salts, are a key material used in electric vehicle (EV) batteries and are directly linked with battery life and charging efficiency. China is the leading global producer of lithium salt but other key countries are expected to make up ground driven by the introduction last year of the US Inflation Reduction Act and Europe’s Critical Raw Materials Act which also favour South Korean producers.
Go deeper with GlobalData
Enchem said it had signed an investment agreement with the government-run Saemangeum Development and Investment Agency earlier this month with the project set to be carried out by EDL, its joint venture with local company Joongang DNM Company.
Construction was scheduled to begin in the second half of 2023 with the 112,000 sq m facility to have initial capacity for 50,000 tons per year when it becomes operational in 2026. The company will supply the material to battery manufacturers locally and overseas including the US and Europe.
