An aerial view of Dongwha Electrolyte's plant in the United States / Courtesy of Dongwha Electrolyte
Dongwha Electrolyte has secured a long-term supply agreement with Chinese lithium salt producer Sunyes Zhongning New Materials Technology strengthening its access to a key battery material amid rising demand from electric vehicles and energy storage systems.
The company, an electrolyte manufacturing subsidiary of Dongwha Enterprise, said Thursday that the exclusive purchasing deal covers lithium hexafluorophosphate (LiPF6), the standard electrolyte salt in commercial lithium-ion batteries. Financial terms, contract duration and volumes were not disclosed.
Sunyes Zhongningspecializes in manufacturing LiPF6, operating an annual capacity of about 5,000 tons, which is equivalent to supplying roughly 35,000 tons of electrolytes.
With the latest agreement, Dongwha Electrolyte expects to secure critical raw materials in advance while improving its cost structure, as demand for LiPF6 continues to rise with the expansion in the energy storage system (ESS) and electric vehicle markets.
“This agreement provides a foundation for supplying high-quality electrolytes to customers without disruption despite volatility in raw material prices,” the company’s CEO Seung Ji-yong said.
“By diversifying supply chains across different regulatory environments, we will respond to uncertainties and further solidify our position in the market.”
The company is also accelerating its two-track strategy in sourcing raw materials, in a bid to expand its market share. It plans to establish region-specific procurement systems tailored to local market conditions.
In markets without distinct regulatory constraints, the company plans to deepen ties with Chinese suppliers to deliver electrolytes that are competitive on both cost and quality.
In more tightly regulated markets, it intends to supply products from its domestic manufacturing partner PGT to respond more flexibly to local demand.
Source: Korea Times News
