Dongwha Electrolyte ramps up push to meet US demand

Dongwha Electrolyte's plant in Tennessee / Courtesy of Dongwha Electrolyte

Dongwha Electrolyte said Tuesday it has signed an agreement with PGT for an equity investment and the sourcing of high-purity lithium hexafluorophosphate from the Pohang-based specialty precision chemical company.

According to the electrolyte maker, the decision aims to strengthen its competitive edge in the North American market by meeting demand for non-Chinese battery materials.

PGT will supply the core ingredient for battery electrolytes through its new plant built last year. The facility employs an advanced continuous synthesis and dynamic crystallization process that reduces raw material and infrastructure costs as well as processing time. The proprietary process is also considered environmentally friendly because it minimizes waste generation and enables byproduct recycling.

With a stable supply of high-quality materials from PGT’s domestic production base, Dongwha Electrolyte seeks to reduce supply chain uncertainty and dependence on foreign suppliers.

Following the U.S. government’s introduction of the prohibited foreign entity requirements under the foreign entity of concern framework, battery manufacturers there have had little choice but to restructure their supply chains.

Against this backdrop, Dongwha Electrolyte has enhanced its production competitiveness by combining the latest raw material sourcing agreement with its new Tennessee plant, which has an annual production capacity of 86,000 tons.

“Under the Advanced Manufacturing Production Credit framework, which requires raw materials sourced outside China, we have stabilized our supply chain through this partnership with PGT to meet global customer demand,” Dongwha Electrolyte CEO Seung Ji-soo said. “We will continue to identify opportunities amid uncertainty and strengthen our position as an irreplaceable partner in the global market.”

Market analysts see Dongwha Electrolyte as one of the likely beneficiaries of the U.S. government’s efforts to curb the growth of China’s battery industry.

“Due to the 2027 enforcement of the U.S. ban on Chinese electrolytes and additives, Dongwha Electrolyte is expected to experience rising exports of electrolytes and additives,” independent research firm Stunning Value Research said in a Jan. 5 report.