South Korea’s Enchem Co. is close to securing a five-year electrolyte supply contract with Contemporary Amperex Technology Co. Ltd. worth ₩1.5 trillion ($1 billion), according to people familiar with the matter.
The deal, which would span 2026 through 2030, calls for Enchem to deliver 350,000 tons of electrolyte to the Chinese battery giant’s facilities under construction in Hungary, Spain, and Germany, as well as plants in Indonesia and China. The annual volume of 70,000 tons represents a significant increase from the 50,000 tons Enchem shipped last year.
CATL’s decision to source from a Korean supplier reflects limitations in China’s domestic battery materials sector. While Chinese manufacturers dominate lithium iron phosphate technology, Korean companies maintain a technological edge in ternary battery systems such as nickel-cobalt-manganese. Enchem’s established European manufacturing footprint — including facilities in Poland and Hungary with combined annual capacity exceeding 200,000 tons — also factored into CATL’s calculus.
Chinese materials companies have been hesitant to build overseas plants over concerns about losing government subsidies, industry observers noted.
The potential contract marks Enchem’s largest single order to date. Shares in the company surged 14% in Seoul trading Friday following media reports of the negotiations.
