Dow and Ube Form Joint Venture to Manufacture Electrolytes for Lithium-Ion Batteries

The Dow Chemical Company and Ube Industries, Ltd. (Ube) informed about an agreement to form a joint venture to manufacture and market formulated electrolytes for lithium-ion batteries (LIBs) in energy storage applications. The 50-50 joint venture, named Advanced Electrolyte Technologies LLC, is expected to be finalized later this year, pending regulatory approval.

The joint venture complements the growth strategy of Dow’s Energy Materials business by adding formulated electrolytes to an integrated product portfolio that addresses the rapidly expanding energy storage industry.

“The growing demand for alternative energy production and energy storage systems places technologies such as advanced batteries for electric/hybrid vehicles and power generation at the very center of the global mega-trends,” said Heinz Haller, Dow executive vice president and chief commercial officer, “Partnering with an electrolyte industry leader like Ube gives Dow the ability to provide cell manufacturers with a robust offering of material technology that meets demanding battery performance requirements.”

The new joint venture will also allow Ube to strengthen its global supply network and improve cost competitiveness for its electrolyte technology outside of Japan. This will enable Ube to take advantage of other rapidly growing geographical segments with its world class formulated electrolyte technologies. The joint venture’s first manufacturing facility is expected to be built at Dow’s Michigan Operations’ site in Midland for startup in 2012.