Novolyte Technologies, a leading manufacturer and supplier of specialty electrolyte materials for lithium-ion battery and energy storage applications, high performance solvents and other specialty chemicals, has signed a definitive agreement with Foosung Co., Ltd., a leading global producer of specialty lithium salts for lithium batteries, to form a new joint venture platform that will create an integrated global producer of lithium battery electrolytes.
The US-based new joint venture entity will retain the Novolyte Technologies name and will be managed by Novolyte’s current management team from its existing Cleveland headquarters. Concurrent with the formation of this joint venture, Novolyte will rename its solvents, phosphines, and custom manufacturing businesses Novolyte Performance Materials, LLC, which will be operated separately by Novolyte’s current management team.
The formation of this joint venture is expected to close in the fourth quarter of 2010 once Novolyte completes the separation of its Performance Materials business and Foosung completes the requisite governmental approvals in Korea.
Foosung Co., Ltd. is the sole producer in Korea and one of four global producers of high purity Lithium Hexafluorophosphate (LiPF6), a specialty salt used for electrolyte manufacture. In addition to supplying technology to Novolyte, Foosung will invest approximately $30 million in the joint venture and contribute a future lithium salt plant. Novolyte is contributing its energy storage business to the joint venture.
This is an important strategic step for Novolyte and we are delighted to be partnering with Foosung Co. and its leaders. With this venture we feel that Novolyte is now positioned to become the leading global supplier of lithium battery electrolytes, a key performance component in the fast growing market of lithium ion batteries for consumer, automotive and industrial markets.—John Televantos, a Partner at Arsenal Capital, an investor in Novolyte since 2008
Novolyte is the leading producer of primary (non-rechargeable) and secondary (rechargeable) Lithium electrolyte materials in North America, Europe and Greater China and a leading provider of electrolyte and ultracapacitor solutions worldwide. Novolyte serves its global customer base through its manufacturing facilities in Baton Rouge, Louisiana, and Suzhou, China under the Purolyte brand.
Novolyte received in 2009 a $20.6-million award in stimulus funds for expansion from the Department of Energy under the Recovery Act - Electric Drive Vehicle Battery and Component Manufacturing Initiative, as well as $1.12 million in Ohio Third Frontier funding in collaboration with the Great Lakes Energy Institute at Case Western Reserve University to develop and commercialize advanced electrolyte materials for next-generation Lithium-ion batteries. Both of these awards will be contributed to the joint venture.