Japan: Electrolyte Business Mitsubishi Chemical, Ube Industries Form JV for Lithium-Ion Rechargeable Batteries
The new joint venture company will be established by a joint incorporation-type company split between Mitsubishi Chemical and Ube Industries for succeeding the electrolyte business for lithium-ion rechargeable battery and other applications of both companies.
Japan – Ube Industries has recently announced that it will establish a joint venture company by joint incorporation-type company split with Mitsubishi Chemical Corporation to succeed the electrolyte business for lithium-ion rechargeable battery and other applications of both companies.
Ube Industries and Mitsubishi Chemical made the decision at each meeting of the Board of Directors and made an agreement of the joint venture. The reduction in the total assets of Ube Industries is expected to be less than 10 % of the net assets on the final day of the previous fiscal year, and the reduction in net sales of Ube Industries is expected to be less than 3 % of the net sales of the previous fiscal year. Consequently, some matters for disclosure and details about the joint incorporation-type split have been withheld.
Purpose of the Integration
The parties have been jointly operating the business in China through Changshu UM Battery Materials Co. in the form of a joint venture since January 2018. The parties have now agreed to expand the tie-up to further enhance competitiveness in and outside of Japan in order to achieve the long-term development of the business.
To this end, the parties will enhance product development capabilities through synergistic effects and strengthen the management base by streamlining purchasing, production, and sales systems. The parties will also integrate research and development and combine the intellectual assets and technical development capabilities possessed by the two companies.
Specifically, the parties will establish the new joint venture company in Japan and transfer the assets of both companies related to the business, including manufacturing sites in Japan, to the new joint venture company. In addition, Changshu UM Battery Materials Co. will be a wholly-owned subsidiary of the new joint venture company. MC Ionic Solutions US and MC Ionic Solutions UK, which are wholly-owned subsidiaries of Mitsubishi Chemical, will be outside the scope of the integration.