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Thursday, 16 June 2016, 12:40 HKT/SGT
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Source: Showa Denko K.K.
SDK to Expand Production Capacities for LIB Materials in Response to Increasing LIB Use in Vehicles

TOKYO, June 16, 2016 - (ACN Newswire) - Showa Denko ("SDK"; TSE:4004) has decided to expand its production capacity for SCMG(TM) carbon-based anode material used in lithium-ion rechargeable batteries (LIBs).

The range of LIB's use is rapidly increasing. These days, more and more LIBs are used not only in small devices such as smartphones and tablets but also in large equipment, especially in electric vehicles (EVs). In China, the demand for large LIBs for use in EVs and electric buses has been significantly increasing in recent years due to stricter emission control and subsidies to EVs by governments and a surge in public awareness of the environment. LIBs for use in EVs have large capacities, thereby requiring a lot of materials. As EV spreads, the size of the market for LIB materials is expected to continue expanding, and will be about 2 trillion yen in 2020.

SCMG(TM) has advantages of low resistance and long life, and demonstrates high performance when used in LIBs for EVs. SCMG(TM) is also rated high by car manufacturers as material to be used in LIBs for vehicles with idling-stop function, which is expected to spread further. This time, SDK decided to expand its capacity for producing SCMG(TM) in order to respond to a lively demand from our customers. Commercial operation of the expanded production facility is scheduled to start at the end of 2016. Through this capacity expansion, Omachi Plant's SCMG(TM) production capacity will be increased by 50%, to 1,500t per year. In addition, SDK started to outsource a part of its SCMG(TM) production to a manufacturer in China in this June.

In January 2016, SDK also started to outsource a part of its production of SDX(TM) carbon-coated aluminum foil, which is used as collector for cathode in LIB, to a Chinese manufacturer. SDX(TM) has the advantages of low resistance and close adhesion to cathode materials in LIBs, thereby improving charge/discharge performance of LIBs and contributing to a reduction in the amount of conduction supportive agents and binders added to cathode materials in LIBs. The demand for SDX(TM) has also been increasing especially in the field of LIBs for EVs. To meet this increase in demand, it became necessary for SDK to expand its SDX(TM) production capacity. Thus SDK started to produce SDX(TM) in China.

SDK positions its LIB materials business as an advantage-establishing business in its medium-term business plan "Project 2020+," aiming to establish a business model that has competitive advantages in terms of earning power and technical development. In addition to SCMG(TM) and SDX(TM), SDK's lineup of LIB materials includes aluminum laminate film (SPALF(TM)), conduction supportive agent (VGCF(TM)), and binder (Polysol(TM)). SDK will maintain stable supply of these high-quality products to the continuously expanding market for LIB materials.


About Showa Denko K.K.

Showa Denko K.K. (SDK; TSE:4004, ADR:SHWDY), a major manufacturer of chemical products, serves a wide range of fields from heavy industry to electronics and computer industries. The Petrochemicals Sector provides cracker products such as ethylene and propylene, the Chemicals Sector provides industrial, high-performance and high-purity gases and chemicals for semicon and other industries, and the Inorganics Sector provides ceramic products, such as alumina, abrasives, refractory and graphite electrodes and fine carbon products. The Aluminum Sector provides aluminum materials and high-value-added fabricated aluminum, the Electronics Sector provides HD media, compound semiconductors such as ultra high-bright LEDs and rare earth magnetic alloys, and the Advanced Battery Materials Department (ABM) provides lithium-ion battery components. For more information, please visit www.sdk.co.jp/english/.

Contact:
Public Relations Office
Phone: 81-3-5470-3235


June 16, 2016 12:40 HKT/SGT
Source: Showa Denko K.K.

Showa Denko K.K. (TSE: 4004)

Topic: Increase Production
Sectors: Chemicals, Engineering
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