[Edaily Reporter Kwon Oh Seok ] Enchem Co., Ltd.(348370), a company specializing in electrolytes, announced on the 23rd that it will expand production and shipments, focusing on the energy storage system (ESS) markets in China and North America, to increase the utilization rate of its existing production facilities. The company plans to focus its strategy on linking revenue growth to improved profitability and operating cash flow, rather than simply pursuing growth in scale.

According to industry sources, as the battery market has contracted due to a slowdown in global electric vehicle demand—increasing the financial burden on domestic materials companies—Enchem Co., Ltd. is also focusing on maximizing the utilization of its existing global production hubs rather than pursuing new expansions. The company believes that increasing factory utilization rates will reduce fixed costs and enable revenue growth without additional investment.
In the Chinese market, the results of its intensive efforts over the past two years are becoming visible. Enchem Co., Ltd.’s Chinese subsidiary’s electrolyte supply volume in 2025 reached approximately 38,000 metric tons, an increase of more than 70% year-over-year. The company has secured a total production capacity of 220,000 metric tons, centered on its Zhaozhuang and Zhangjiagang plants, and plans to boost utilization rates by expanding its local battery customer base.
The company currently supplies electrolyte to a total of 50 companies, including 20 major Chinese battery manufacturers, and is expanding its customer base through new customer certifications and sales expansion. In particular, as it rapidly secures a customer base in the ESS market, this year’s supply of electrolyte for the Chinese ESS market is projected to reach 63,000 metric tons. This is expected to account for approximately 70% of the company’s revenue in China.
A supply contract with CATL, the world’s leading battery manufacturer, is also a key driver of growth. Enchem Co., Ltd. has signed a contract to supply a total of 350,000 metric tons of electrolyte over five years, from 2026 to 2030, and has been conducting quality verification for the mass production of LFP battery electrolyte, primarily at its Jojang plant. The company aims to expand its supply volume in China to approximately 80,000 metric tons this year, more than doubling it compared to the previous year.
In North America, the company is shifting its product portfolio toward energy storage systems (ESS). As demand for ESS grows due to increased investment in artificial intelligence (AI) data centers and power grids, demand for electrolytes for LFP batteries—which are suitable for long-duration charging and discharging—is also expanding.
Enchem Co., Ltd. is responding to the expansion of ESS production by its North American battery customers through its Georgia, U.S., plant. Having been selected as the LFP electrolyte supplier for a global battery manufacturer currently establishing an ESS production line, the company is proceeding with process approval and preparations for mass production; supply is expected to reach approximately 5,000 metric tons based on that line’s capacity. Actual supply volumes are expected to vary depending on the customer’s operating rates and mass production schedules.
Including this, the company plans to expand its shipments of ESS electrolytes in North America to over 8,000 metric tons by 2026. The strategy is to shift its revenue structure—which was previously centered on EVs—to one where ESS accounts for more than 30% of revenue, thereby fostering stable revenue growth at the Georgia plant.
The company is also working to stabilize its financial structure. It is reviewing various funding options, including borrowing from financial institutions, attracting investment, utilizing existing assets, and raising capital through the capital markets, and plans to disclose specific details once they are finalized. Establishing a local funding base for its U.S. subsidiary, Enchem Co., Ltd., is also being pursued as a mid- to long-term goal. Once the ongoing merger with a U.S.-listed company is completed, the company expects to establish a foundation for self-financing its growth by leveraging local production facilities and its customer base.
An Enchem Co., Ltd. official stated, “We are focusing on ensuring that the expansion of production and shipments leads not only to increased sales but also to improved profitability and cash flow,” adding, “We will gradually strengthen our financial position by expanding our customer base in China, responding to the ESS market in North America, and increasing the utilization rate of our existing facilities.”