Ube Industries, Ltd. (Tokyo, Japan; www.ube-ind.co.jp) announced that it will establish a joint venture company by joint incorporation-type company split with Mitsubishi Chemical Corp. (MCC; Tokyo; www.m-chemical.co.jp) to succeed the electrolyte business for lithium-ion rechargeable battery and other applications of both companies.
The parties have been jointly operating the business in China through Changshu UM Battery Materials Co., Ltd. in the form of a joint venture (JV) since January 2018. The parties have now agreed to expand the tie-up to further enhance competitiveness in and outside of Japan in order to achieve the long-term development of the business. To this end, the parties will enhance product development capabilities through synergistic effects and strengthen the management base by streamlining purchasing, production, and sales systems. The parties will also integrate research and development and combine the intellectual assets and technical development capabilities possessed by the two companies. Specifically, the parties will establish the new joint venture company in Japan and transfer the assets of both companies related to the business, including manufacturing sites in Japan, to the new joint venture company. In addition, Changshu UM Battery Materials Co., Ltd. will be a wholly-owned subsidiary of the new joint venture company. MC Ionic Solutions US, Inc. (based in Tennessee) and MC Ionic Solutions UK, Ltd. (based in Durham, U.K.), which are wholly-owned subsidiaries of Mitsubishi Chemical, will be outside the scope of the integration.