Capchem and Indorama Ventures signed a memorandum of understanding about cooperation in lithium-ion battery chemicals in North America

The US subsidiary of Capchem, Capchem USA, has recently entered into a non-binding memorandum of understanding with Indorama Ventures, one of the global leading petrochemicals producers, intending to jointly build and operate plants to produce lithium-ion battery chemicals at Indorama Ventures’ petrochemical complex in U.S. Gulf Coast. The proposed joint venture plants will supply the lithium-ion batteries industry in North America.

The product portfolio is to be comprised of battery-grade ethylene carbonate, di-methyl carbonate, ethyl methyl carbonate, di-ethyl carbonate and battery electrolyte. Technology to be used in the proposed plants will be licensed from Capchem, whilst Capchem has been operating a carbonate solvent facility in China and has mature production process.The key raw materials for the proposed carbonate solvent facility, including purified ethylene oxide and carbon dioxide, will be supplied from Indorama Ventures’ integrated supply network. The production process of carbonate solvents consumes carbon dioxide, and will therefore have positive impact on reduction of carbon emission.

In 2018, Capchem acquired BASF’s electrolyte business in Europe and United States. Since then, Capchem starts accelerating global expansion. In the same year, Capchem founded its overseas subsidiaries in Poland and US, to better serve local customers, and to start preparation for setting up production facilities in North America and Europe. In the past few years, Capchem has already entered into long-term supply agreements with global leading lithium-ion battery companies in Europe and North America, including Ultium Cells, LG Energy Solution, and Northvolt. The potential cooperation between Capchem and Indorama Ventures, as well as Capchem’s Poland factory (a joint venture with LG Energy Solution) which is estimated to start production in 2022 Q4, are critical to Capchem’s globalization strategy implementation, and will also promote localization of lithium-ion battery supply chain in North America and Europe.

About Capchem

Capchem is a leading company in electronic chemicals and functional materials. It is headquartered in Shenzhen, China, and was listed on Shenzhen Stock Exchange (Stock Code: 300037). Capchem’s portfolio is organized into lithium-ion battery chemicals, capacitor chemicals, organic fluorine chemicals and semiconductor chemicals.

Lithium-ion Battery Chemical Business Unit is the largest business sector of Capchem. Its product portfolio comprises battery electrolyte, as well as additives, carbonate solvents and novel lithium salts used in electrolyte. With advanced research and development capabilities, Capchem has been providing integrated solutions for leading lithium-ion battery companies all over the world. For more information about Capchem’s Lithium-ion Battery Chemical Business Unit, please visit https://en.capchem.com/product/6/.

About Indorama Ventures

Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Europe, Africa, Americas, and Asia-Pacific. The company’s portfolio comprises Combined PET, Integrated Oxides and Derivatives, and Fibers. Indorama Ventures products serve major FMCG and automotive sectors, i.e., beverages, hygiene, personal care, tire and safety segments. Indorama Ventures has approx. 26,000 employees worldwide and consolidated revenue of US$14.6 billion in 2021. The Company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI). Indorama Ventures is headquartered in Bangkok, Thailand with more than 140 manufacturing sites in 35 countries.