Ube Industries, Ltd. (Ube; Tokyo, Japan; www.ube-ind.co.jp) and Mitsubishi Chemical Corp. (MCC; Tokyo; www.m-kagaku.co.jp) have agreed to a tie-up for the lithium-ion battery electrolyte business in China under a 50-50 joint venture (JV), in order to supply highly competitive electrolytes to the market. It will enable the two companies to combine their production technologies and mutually use their technology resources including intellectual property, in order to enhance their technologies and cost competitiveness.
Ube Industries and Mitsubishi Chemical will apply for approval from government authorities in China and other relevant countries, to comply with competition laws. Upon securing the necessary approvals, the two companies will shift their electrolyte businesses in China to a joint operation in April 2017. They will discuss the details of the operating structure and announce them after reaching a decision.
Provided that the two companies are in compliance with competition laws for relevant countries, Ube Industries and Mitsubishi Chemical will consider the possibility of comprehensive business tie-ups including for development and production, in other countries and regions besides China.
Ube Industries manufactures electrolytes at the Sakai Factory located in Osaka Prefecture, Japan, and at a plant located in Zhangjiagang, Jiangsu Province, China. The annual production capacity is 10,000 metric tons (m.t.) in Japan and 5,000 m.t. in China.
Mitsubishi Chemical manufactures electrolyte at the Yokkaichi Plant located in Mie Prefecture, Japan, a plant located in Stockton-on-Tees, the U.K., a plant located in Memphis, Tenn, U.S. and a plant located in Changshu, Jiangsu, China. The annual production capacity is 13,500 m.t. in Japan and each 10,000 m.t. in the U.K., USA, and China.