Enchem, Accelerates Entry into World's No. 1 CATL Supply Chain "Pursuing Acquisition of Core Value Chain Company"

[Financial News]  Global leading electrolyte company Enchem is accelerating its entry into the value chain of the world's No. 1 battery company CATL. Enchem announced on the 29th that it is promoting the acquisition of 100% shares of a Chinese lithium and sodium battery raw and subsidiary material supplier.
The company Enchem is pursuing to acquire has been continuously supplying core materials to CATL and has an annual production capacity of 10,000 tons.
Moreover, it has the technological capability to produce raw materials for sodium batteries led by CATL. The seller of the shares is a company where CATL is the largest shareholder, and is well known as a key partner of CATL, developing core materials and electrolytes for sodium batteries.
Through this acquisition, Enchem aims to further expand its supply chain to the southern region of China and supply more than 70,000 tons of electrolyte annually to CATL, along with about 30% of the specific materials required by CATL, and future sodium battery electrolytes and electrolytes. This exceeds Enchem's total supply of about 50,000 tons in 2024 by 1.4 times.
Enchem is also accelerating its cooperation with CATL in the European and American markets. Enchem was recently selected as the final supplier of recycling NMP (R-NMP) for the super-large battery production base being constructed by CATL in Debrecen, Hungary. To this end, it is promoting the construction of a new plant in the nearby area, and the land purchase contract has recently entered the final stage. Enchem aims to supply products to CATL from next year.
In addition, Enchem is also negotiating the supply of NMP, carbon nanotube (CNT) dispersant, including electrolytes, related to a project that CATL is collaborating with major U.S. automakers.
Meanwhile, Enchem plans to further solidify its dominance in the U.S. market, where it holds the No. 1 market share. Enchem's U.S. subsidiary is promoting fundraising from global funds, and the related funds will be invested in expanding core facilities such as electrolytes, R-NMP, carbon nanotube (CNT) dispersant, and lithium salts at plants in Georgia, Tennessee, and Indiana. Through this, it plans to complete a 'super gap' in the current No. 1 electrolyte production capacity in the U.S. and further solidify its unique position in the North American market by combining new businesses.
An Enchem official said, "CATL is currently the top company in the global battery market, and most of the material supply chain is monopolized by Chinese companies," adding, "Enchem plans to strategically enter CATL's core value chain by investing in companies developing high-functional materials such as sodium battery raw materials, beyond simply supplying electrolytes." He continued, "As we have a structure that can simultaneously respond to the three key markets of China, Europe, and the United States, securing strategic partnerships with top global companies has become more important than ever," adding, "We will continue to actively respond to the technological trends of top battery companies and strive to secure leadership in the global material market."


kakim@fnnews.com Kyung-Ah Kim, Reporter