Japanese chemical firm Nippon Shokubai (TYO:4114) intends to significantly boost its production capacity in China for an electrolyte that prolongs the lifespan of lithium-ion batteries used in EVs and energy storage systems, Nikkei Asia reported Tuesday.
A Chinese affiliate, in which Nippon Shokubai owns a 38% stake, will expand a Hunan province facility to raise annual output from 2,400 metric tons to 12,400 tons in fiscal 2027, without additional investment from the Japanese parent, the publication said.
The electrolyte, LiFSI, extends battery life by 1.6 times compared to the conventional LiPF6, reduces charging time, and improves low-temperature performance, though mass production is needed to lower its currently higher cost, the news daily said.
Demand for electrolytes in China is shifting, with storage batteries now accounting for 30-40% of sales, up from roughly 20% previousl, as renewable energy expands, while domestic Chinese producers are gaining market share, the report said.
Despite U.S. EV demand slowdown delaying a North American plant, Nippon Shokubai remains committed to battery materials, aiming to boost total capacity tenfold by 2030 with the China expansion as a key step, it added.
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