THE WOODLANDS, Texas, Aug. 1, 2022 /PRNewswire/ -- Indorama Ventures Public Company Limited (IVL), a global sustainable chemical company, has entered into a non-binding agreement with Capchem Technology USA Inc. (Capchem USA) to study the opportunity to build and operate a world-class lithium-ion battery solvents plant at one of IVL's petrochemical facilities in the U.S. Gulf Coast. The proposed plant will supply the lithium-ion batteries industry in North America, which is boosted by significant growth in the development of electric vehicles (EV).
The proposed facility will produce ethylene carbonate and its chemical derivatives, which are essential components of the electrolytes solutions used in lithium-ion batteries. IVL's Integrated Oxides and Derivatives (IOD) segment and Capchem USA, a subsidiary of Shenzhen Capchem Technology Co., Ltd., will study the proposal to develop and operate the plant. Capchem is a global leading company in lithium-ion battery chemicals. It would significantly benefit the North American lithium-ion battery market, which currently depends on imports from Asia amid potential for accelerated growth in the EV industry.
Entering the lithium-ion battery market as a competitive new player reinforces IOD's transition towards downstream specialty products, increasing IVL's opportunities in attractive end-market applications. Under its Vision 2030 ambition, IVL is building on its global integrated petrochemicals model through investing in adjacent businesses that offer High Value Add (HVA) products which contribute to a more sustainable world.
The study will assess the opportunity to build a plant using Capchem's established technology to produce ultra-pure ethylene carbonate, di-methyl carbonate, ethyl methyl carbonate, di-ethyl carbonate and derivatized electrolyte solutions. The study also includes an option to build a second module to meet expected growing market demand.
The key raw materials for the proposed new plant, namely purified ethylene oxide and carbon dioxide, will be supplied from IVL's integrated supply network as part the company's strategy to enhance end-market exposure, technologies, and downstream portfolio breadth. The sequestered carbon dioxide used in the process has a positive sustainability impact.
Alastair Port, Executive President, Integrated Oxides and Derivatives (IOD), IVL, said, "IVL is constantly looking for ways to enhance our sustainability programs towards our vision of creating a more sustainable world. This mutual study with Capchem USA not only helps us to achieve that, but also supports the adoption of zero-emission electric mobility. Given our proven operational excellence, highly skilled workforce, world-class infrastructure, and access to captive raw materials, we believe we are well-placed to successfully implement the technology, which will help to reduce North American EV manufacturers' reliance on imports."
About Indorama Ventures
Indorama Ventures Public Company Limited, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world's leading petrochemicals producers, with a global manufacturing footprint across Europe, Africa, Americas, and Asia-Pacific. The company's portfolio comprises Combined PET, Integrated Oxides and Derivatives, and Fibers. Indorama Ventures products serve major FMCG and automotive sectors, i.e., beverages, hygiene, personal care, tire and safety segments. Indorama Ventures has approx. 26,000 employees worldwide and consolidated revenue of US$14.6 billion in 2021. The Company is listed in the Dow Jones Emerging Markets and World Sustainability Indices (DJSI). Indorama Ventures is headquartered in Bangkok, Thailand with more than 140 manufacturing sites in 35 countries.
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Source: Indorama Ventures Related Stocks: Bangkok:IVL OTC:INDOY