Capchem Technology, a Shenzhen-based supplier of fine chemical products for lithium-ion batteries, announced plans to invest USD 260 million in a new electrolyte solvent plant in Saudi Arabia, alongside up to CNY 200 million (approximately USD 28.6 million) to expand its Polish electrolyte facility.
The Saudi facility will be located in the Yanbu Heavy Industrial Park, where Capchem will initially hold sole ownership and later seek local third-party investors to support localization. Once completed—in no more than three years—the plant is expected to produce 200,000 tons of carbonate solvents and 100,000 tons of ethylene glycol annually. Carbonate solvents are core components of lithium-ion battery electrolytes, while ethylene glycol serves as a key upstream raw material in their production. The site will include utilities, environmental protection systems, warehousing and logistics infrastructure, and safety facilities.
According to Capchem, the new plant will strengthen the company’s global production footprint, enhance supply stability for overseas electrolyte factories—including its Polish operation—reduce cross-regional logistics costs, and mitigate supply chain risks. The location’s strategic position and established logistics networks will enable efficient service to European and Southeast Asian markets, and will bridge supply ahead of the startup of Capchem’s planned U.S. facility.
On the same day, Capchem confirmed it will begin construction of the second phase of its lithium-ion battery electrolyte factory in Śrem, Poland. This expansion is expected to add 50,000 tons of annual electrolyte capacity within two years, addressing Europe’s growing demand and improving service responsiveness for regional customers. The first phase, which started operations in April 2023, has a 40,000-ton capacity and counts LG Energy Solution, Samsung SDI, Volkswagen Group’s battery unit, and the Ultium Cells plant in Ohio among its clients.
Capchem is also advancing or planning additional electrolyte and component chemical plants in Ohio and Louisiana, and has partially commissioned an electrolyte plant in Malaysia. According to SNE Research, the company held a 15 percent to 16 percent share of the global lithium-ion battery electrolyte market in the first half of last year.
Source: Yicai
