It is understood that many Japanese battery material manufacturers have plans to set up factories or expand production capacity in Europe and the United States. This also reflects the evolution of the industrial chain pattern after more and more countries and regions regard electric vehicles as an important industry.
According to reports, Mitsubishi Chemical intends to invest "billions of yen" (tens of millions of dollars) in European and American countries, aiming to double the production capacity of battery electrolytes by 2023. Specifically, Mitsubishi plans to double the electrolyte production capacity of the US factory to 34,000 tons, which will also exceed the company's current production capacity of 26,000 tons in Japan. At the same time, Mitsubishi also plans to double the electrolyte production capacity of the UK factory. to 20,000 tons.
In simple terms, the common lithium battery for electric vehicles on the market is roughly composed of four key parts: positive and negative electrode materials, electrolyte solution and separator. As the main supplier in the field of electric vehicle battery production, the market share of Japanese manufacturers in these four key materials is roughly between 10-30%. Considering that their customers are more inclined to look for suppliers in the region, Japanese manufacturers also have to increase investment in Europe and the United States.
In addition to Mitsubishi Chemical, Tokai Carbon also intends to increase the graphite production capacity in Europe to 30,000 tons per year. As a raw material for battery anodes, this part of the production capacity can supply about 600,000 electric vehicles. Donghai Carbon currently supplies about 1% of the world's anode materials, and it is also the company's strategy to compete for the global market by prioritizing the expansion of production capacity in Europe.
Cathode material supplier Sumitomo Gold Mine is also actively looking to build factories in the United States. The company previously only produced in Japan, but considering the goal of tripling production by 2030, the company is considering putting some production capacity overseas.
Asahi Kasei, the world's second largest separator manufacturer, is also trying to expand its production capacity in Europe and the United States. In the company's plan to produce 3 billion square meters of battery separators in the future, the new investment will focus on overseas production capacity.
According to the IEA, the United States and Europe will account for 40% of the global demand for electric vehicle batteries, and the Chinese market is expected to account for 30% alone. Considering that nearly 70% of the world's lithium battery raw materials are currently produced in China, the increase in the European and American electric vehicle industry chain will be the best opportunity for Japanese manufacturers to gain market share.
In addition, supply chain disruptions during the COVID-19 pandemic have also made automakers aware of the risks of single-market supply. At present, the production facilities of many Japanese battery material suppliers are basically local, and expanding production capacity in Europe and the United States can also enhance the resilience of the supply chain system.
