LOTTE Chemical Expands Production of Four Core Materials for Electrolyte Organic Solvents

Used in Lithium-ion Batteries

█ Developed proprietary EMC, DEC technologies for the first time in Korea to maximize business

    competitiveness of electrolyte organic solvents for lithium-ion batteries used in EVs...

    Material with technological monopoly of global hydrogen, promoting first commercialization in Korea

█ App. 140 billion KRW to be additionally invested following the EC, DMC plan scheduled for completion

    at Daesan plant in ‘23, to establish EMC, DEC plants

█ Construct electrolyte organic solution (EC, DMC, EMC, DEC) production portfolio through self-supply of raw materials

    (HPEO, CO2)… Procure stable product supply and price competitiveness based on its possessed raw materials

█ Battery Materials Business Director Lee Young-joon, “We will strive to expand materials for lithium-ion batteries

    by actively developing battery material technologies and cooperation in businesses related to group subsidiaries”,

    “We will contribute in Korea becoming a global material, parts and equipment powerhouse through technological

    development and localization for strengthening competitiveness of the domestic materials industry”

LOTTE Chemical is pursuing production of EMC (Ethyl Methyl Carbonate), DEC (Di Ethyl Carbonate) through proprietary technological development for the first time in Korea. It announced that with this, it will be able to product the four major materials for electrolyte organic solvents, which are lithium-ion battery materials used in EVs. 

Since announcing the construction of the nation’s first EC (Ethylene Carbonate) and DMC (Dimethyl Carbonate) plant, which are electrolyte organic solvent product for batteries by investing about 210 billion KRW at the Daesan Plant in May 2021, it will now invest an additional 140 billion KRW to expand production to include EMC (Ethyl Methyl Carbonate) and DEC (Di Ethyl Carbonate).

The four materials produced by LOTTE Chemical are representative organic solvents used in electrolytes, which are one of the four major components of lithium-ion batteries, and it accounts for about 30% of the total cost of electrolytes. It is a material with high growth potential as there is rapidly rising demand for EVs but currently depends completely on imports, and LOTTE Chemical plans to not only strengthen business competitiveness, but also contribute to the localization of materials through this investment.

Battery Materials Business Director Lee Young-joon, “We will strive to expand materials for lithium-ion batteries by actively developing battery material technologies and cooperation in businesses related to group subsidiaries,” and “We will contribute in Korea becoming a global material, parts and equipment powerhouse through technological development and localization for strengthening competitiveness of the domestic materials industry.”

By pursuing electrolyte organic solvent businesses including construction of proprietary production facilities for core materials (HPEO, CO2), LOTTE Chemical will not only be able to provide stable product supplies for clients, but also have a competitive business structure. In addition, the CO2 (carbon dioxide) captured using the CO2 capturing equipment under construction at the Daesan Plant will be used as raw materials for highly pure EC and DMC and be used for responding to the climate crisis and for realizing carbon neutrality.

Meanwhile, LOTTE Chemical is also actively investing in future battery materials businesses. 

In January of this year, it invested 6.5 billion KRW to obtain 15% of shares as the second largest shareholder of ‘Standard Energy’ that developed the world’s first vanadium-ion batteries, which is receiving attention as next-generation batteries for energy storage systems (ESS) In April, establish a joint venture with ‘SOELECT’ with the US start-up that developed lithium metal anode and solid electrolytes, which are drawing attention as core materials for next-generation batteries, and entered an MOU to construct a GWh-level anode material production facility worth about 200 million USD in the United States by 2025.