Enchem plans to establish an electrolyte plant, a key material for secondary batteries, in Indonesia. Enchem is the first to establish an electrolyte production line in Indonesia. This investment is in response to a joint venture, established by Hyundai Motor and LG Energy Solution for electric vehicle batteries, in Indonesia.
Enchem aims to start construction of an electrolyte plant in Indonesia this year and operate it in 2023. Jeong-gang Oh, CEO of Enchem, said, "We are conducting a final review on the investment amount, site, and production scale for the establishment of an electrolyte factory in Indonesia."
Electrolytes are one of the four core materials that make up secondary batteries. It serves as a medium to help lithium ions move inside the battery. The shelf life of electrolytes is particularly short, 3-4 months from the date of production, so it is a material that must be located near the battery production plant.
Enchem is believed to be building an Indonesian plant to respond to meet the demand for electrolyte from domestic battery manufacturers. In Indonesia, Hyundai Motor Company and LG Energy Solutions are building a joint plant for electric vehicle batteries with the goal of operation in 2024. With the high potential for electric vehicle growth in Indonesia, the joint venture's production capacity is expected to expand significantly in the future.
Enchem operates electrolyte plants in Europe, the United States, and China, and is preparing to build new factories. The company jumped as a latecomer among domestic electrolyte companies in 2012, but operates the largest domestic and overseas electrolyte plant. The production capacity is expected to be 125,000 tons at the end of this year. Thanks to the expansion of overseas production bases and securing new customers, the company aims to reach 500 billion won in 2025 and 1 trillion won in sales by 2030.
Other domestic electrolyte companies such as Soulbrain and Donghwa are also accelerating their business expansion. Soulbrain is supplying electrolytes to LG Energy Solution, Samsung SDI, and SK On. Soulbrain's electrolyte affiliates along with Europe, the United States, and China are responding to Malaysia's electrolyte demand. Dongwha's electrolyte affiliates are also promoting the construction of plants in the US, based on Europe and China. The company is known to be supplying electrolytes to Samsung SDI and SK On. These companies are expected to accelerate the establishment of overseas production plants targeting the three domestic battery companies in the electrolyte market.
By Staff Reporter Kim Ji-woong jw0316@etnews.com