Nippon Shokubai, a Japanese chemical company, is set to invest ¥37.5 billion ($263 million) in a new plant to produce lithium bis(fluorosulfonyl)imide (LiFSI), a high-performance electrolyte for electric vehicle (EV) batteries, Nikkei reported. The factory, located in Japan’s Fukuoka prefecture, is expected to be operational by 2028 and will be a part of the growing EV supply chain in southwestern Japan.
LiFSI can significantly extend battery life, though it is more costly to produce compared to traditional electrolytes. Nippon Shokubai aims to increase its domestic capacity for battery electrolytes tenfold, to 3,000 tonnes annually, enough to support 210,000 electric vehicles. While the company leads in LiFSI purity and production patents, competition from Chinese manufacturers is intensifying.
Japan’s Ministry of Economy, Trade, and Industry will offer up to ¥12.5 billion in subsidies for the plant’s construction, underscoring the government’s focus on strengthening its domestic EV supply chain. Nippon Shokubai expects LiFSI to replace 20% of battery electrolytes by the time the plant starts operations.
