Dongwha breaks ground for electrolyte plant in Tennessee

Dongwha Enterprise Vice Chairman Seung Ji-soo, third from left, poses with Tennessee Governor Bill Lee, fourth from left, during Dongwha Electrolyte's groundbreaking ceremony for its electrolyte plant in Clarksville, Tennessee, Tuesday (local time). From left are Clarksville Mayor Joe Pitts, Montgomery County Mayor Wes Golden, Seung, Lee, Commissioner Stuart McWhorter of the Tennessee Department of Economic and Community Development, and Dongwha Electrolyte CEO Lee Si-joon. Courtesy of Dongwha Electrolyte

By Kim Hyun-bin

Dongwha Electrolyte, a subsidiary of Dongwha Enterprise, is entering the U.S. battery market as it starts to build a $70 million electrolyte plant in Clarksville, Tennessee, the company said Wednesday.

The groundbreaking ceremony on Tuesday (local time) was attended by Dongwha Enterprise Vice Chairman Seung Ji-soo, Dongwha Electrolyte CEO Lee Si-joon, Tennessee Governor Bill Lee, Stuart McWhorter, Commissioner of the Tennessee Department of Economic and Community Development, and Clarksville Mayor Joe Pitts.

Dongwha Electrolyte specializes in electrolytes, the core materials for batteries. Electrolytes are substances that enable the movement of lithium ions between the cathode and anode components of a battery. They are produced by combining lithium salts, solvents and additives.

The Tennessee plant is scheduled to be completed in the third quarter of 2024, with initial production starting in the fourth quarter. Once finished, Dongwha Electrolyte will establish production bases in Asia, Europe and the Americas. The company has already set up production lines in Korea, China, Hungary, Malaysia and other countries.

The new plant will have an annual production capacity of 86,000 tons, making it the largest among the company's production bases. With an investment of over $70 million, the company plans to expand investments, including capacity expansion, to meet the growing local demand.

"We will make every effort to successfully complete the construction of our first electrolyte plant in the U.S. at the Tennessee production base. We aim to showcase our company's capabilities in the North American battery material market. Leveraging our research and development (R&D) expertise and technological prowess demonstrated through global production capacity and self-production of major additives, we strive to gain a market advantage." Dongwha Electrolyte CEO Lee Si-joon said.