S.Korea’s Enchem to build lithium salt plant in Saemangeum

Enchem Co., South Korea’s top electrolyte manufacturer, on Thursday announced the investment of 600.5 billion won ($473.5 million) to build a lithium salt plant in Saemangeum, an estuarine tidal flat on the country’s southwestern coast.

The company signed an investment agreement with the government-run Saemangeum Development and Investment Agency. The investment will come from EDL, a company jointly set up by Enchem and Joongang DNM Co..

Lithium salt is the main raw material for the production of electrolytes, a key material for secondary batteries directly related to battery life and charging and discharging efficiency.

Under the agreement, EDL will start construction from the second half of the year of the plant with annual capacity of 50,000 tons on a site covering 112,000 square meters at Section 5 of Saemangeum National Industrial Complex.  Completion is targeted for 2026.

The output there will go to battery companies in relevant regions through Enchem’s supply chains in the US and Europe.

China leads the world in lithium salt production, but companies in North America and Europe have expedited looking for alternative suppliers with the recent US Inflation Reduction Act and Europe's Critical Raw Materials Act, creating opportunities for South South's sector.

Write to Jae-Fu Kim at hu@hankyung.com