Ube, Dow Chemical tie up on electrolytes for lithium-ion batteries

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Ube Industries Ltd and The Dow Chemical Co have agreed to establish a joint venture to manufacture and market electrolytes for lithium-ion batteries.

Ube manufactures and markets electrolytes and separators, which comprise two of the four main components of lithium-ion batteries. Ube introduced functional electrolytes to the market in 1997, leveraging its own expertise in organic synthesis and electrochemistry. Ube has since expanded sales of functional electrolytes, which improve battery performance by combining high-purity electrolytes with additives. These functional electrolytes have played a critical role in enhancing the performance of modern lithium-ion batteries and making new applications for the batteries possible.

The lithium-ion battery market is growing today, driven mostly by applications for portable consumer devices such as mobile phones, laptop computers, and digital cameras. The demand for these batteries is expected to grow significantly in the future with the advance of industrial and storage battery applications such as for hybrid and electric vehicles.

To meet the growing demand, the 50-50 joint venture between Ube and Dow will facilitate this ambition and leverage the world-class systems for R&D, production and marketing that Dow, the global leading chemical manufacturer, possesses, as well as its intellectual property management methods, both companies said in a statement.

The joint venture will gradually build manufacturing facilities for electrolytes in the United States, China and Europe, targeting the time frame from 2012 to 2015.

Ube will license its electrolyte technology to the joint venture. In addition, Ube and Dow will support the joint venture in a number of ways including support for the construction and operation of manufacturing facilities and supply of raw materials, as well as in the areas of technical sales, staffing and administrative support.