|Ube and Dow Agree on Joint Venture in Electrolytes for Lithium-Ion Batteries|
TOKYO July 6, 2011_ Ube Industries, Ltd. (Ube) announced today that Ube and The Dow Chemical Company (Dow) have agreed to establish a joint venture to manufacture and market electrolytes for lithium-ion batteries (LIBs).
Ube manufactures and markets electrolytes and separators, which comprise two of the four main components of LIBs. 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 LIBs and making new applications for the batteries possible.
The LIB 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 for LIBs, Ube recognizes the importance of immediately building a global framework for manufacturing and marketing. 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.
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.
Ube and Dow have not released details or terms of the joint venture agreement.
Data on Joint Venture
Name: Advanced Electrolyte Technologies LLC
Location: Michigan, USA
President and CEO: Will be dispatched from UBE.
To be established: Immediately after approved to establish
Equity Ownership: The US subsidiary of Ube Industries, Ltd. (50%), The Dow Chemical Company (50%)
Ube Industries is one of Japan's top chemical companies, founded in 1897. Many of Ube's basic chemical products and materials find applications in various industries including the automotive and consumer electronics, while the company's own independently developed polyimides, electrolytes, separators, and other specialty products are used across the globe in personal computers, mobile phones, and similar applications. Ube is well-known worldwide for these specialty products. For more information, please visit http://www.ube.co.jp
Dow (NYSE: Dow) combines the power of science and technology with the "Human Element" to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world's most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow's diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2010, Dow had annual sales of $53.7 billion and employed approximately 50,000 people worldwide. The Company's more than 5,000 products are manufactured at 188 sites in 35 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at http://www.dow.com.