LOTTE Chemical and Sasol Chemicals exploring collaboration to develop materials for electric vehicle batteries

Rhea-AI Summary

Sasol Chemicals and LOTTE Chemical are conducting a pre-feasibility study to build a facility for producing battery-grade electrolyte solvents, essential for lithium-ion batteries used in electric vehicles. The study will evaluate locations in Lake Charles, USA, and Marl, Germany, leveraging feedstock from Sasol and proprietary technologies from both companies. The initiative aims to meet increasing battery demand while focusing on sustainability and minimizing carbon footprints through renewable energy usage.

Positive

• Collaboration with LOTTE Chemical enhances market position in battery materials.
• Study targets production of battery-grade electrolyte solvents for the growing EV market.
• Focus on sustainability and renewable energy could improve public perception and regulatory compliance.

Negative

• No guaranteed outcomes from the pre-feasibility study may pose financial uncertainties.
• Dependent on regulatory approvals and market conditions, which can be unpredictable.

Companies will assess the feasibility of building a facility to produce electrolyte solvents

HOUSTON--(BUSINESS WIRE)-- Sasol Chemicals, a business unit of Sasol Ltd. (JSE: SOL; NYSE: SSL) and LOTTE Chemical have agreed to conduct a pre-feasibility study of a joint project to build, own and operate a plant to produce battery-grade electrolyte solvents, key components of lithium-ion batteries for electric vehicles.

The companies will assess the suitability of Sasol’s locations near Lake Charles in the United States and Marl in Germany for a facility that could produce a variety of battery-grade electrolyte solvents, using feedstock provided by Sasol and third parties and employing proprietary technologies of both LOTTE and third-party licensors.

"The increase in battery demand is driving the rapid growth of demand for the key materials that constitute a lithium-ion battery. LOTTE Chemical will lead the global battery materials market quantitatively and qualitatively by rapidly expanding our battery materials business," said Young-Jun Lee, Head of the Battery Materials Business Group for LOTTE Chemical.

“This agreement is consistent with our strategy to answer the sustainability challenge through the solutions we provide our customers,” said Shelley Grahmann, Vice President of Strategy Development and Optimisation for Sasol Chemicals. “With an existing Sasol footprint and strong site infrastructure available in Marl, and the development of our Lake Charles site as a sustainability hub, we are eager to determine if either site would be ideally suited for a facility to provide key materials to the lithium-ion battery market.” The project will also consider options to minimize carbon footprint, such as the usage of renewable energy.

Electrolyte solvents enable lithium-ion batteries by allowing lithium ions to travel more easily between the battery’s anode and cathode. Lithium-ion batteries are likely to be the key power source for electric vehicles.

About Sasol Chemicals

Sasol Chemicals is a solutions provider focused on sustainability, circularity and specialties. It fulfills its purpose of “Innovating for a better world” by offering a broad, state-of-the-art portfolio of specialty and commodity chemicals for a wide range of applications and industries.

Our solutions are used by more than 7,500 customers, in 120 countries, in countless products that improve the quality of life for people around the world. They also provide the building blocks for a sustainable future by helping reduce energy usage, waste and packaging, and by providing solutions to the renewable energy industry.

Sasol Chemicals is a business of Sasol Limited, a leading chemicals and energy company focused on creating sustainable value for our stakeholders. For more information, visit the Sasol Chemicals website.

About LOTTE Chemical

LOTTE Chemical is Korea's leading chemical company, contributing to the healthy and rich life of humankind through creative challenges and innovation.

Our extensive range of products from polymer to megatrend product groups is widely used in household goods that we frequently encounter in our everyday lives, as well as cutting-edge new materials.

LOTTE Chemical is poised to take another leap to protect nature and make human life more abundant through the continuous development of products using eco-friendly technologies. Based on ESG management, we will create a more convenient lifestyle for people and a better environment for nature, as we build a tomorrow that is more beneficial to both people and nature. For more information, visit the LOTTE Chemical website.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220619005002/en/

Sasol Chemicals media contact

Russell Johnson

Head of Global Corporate Affairs

Sasol Chemicals

russell.johnson@us.sasol.com

LOTTE Chemical media contacts

Jiwoon Seong

Senior Assistant, Communication Team

jiwoon.seong@lotte.net

Seung Han Jung

Manager, Communication Team

seunghanjung@lotte.net

Source: Sasol Chemicals

FAQ

What is the joint project between Sasol and LOTTE Chemical about?

Sasol and LOTTE Chemical are studying the feasibility of building a facility to produce battery-grade electrolyte solvents essential for lithium-ion batteries.

Where will the proposed facility for electrolyte solvents be located?

The proposed facility locations are in Lake Charles, USA, and Marl, Germany.

What is the significance of battery-grade electrolyte solvents?

These solvents are crucial for the functionality of lithium-ion batteries, which power electric vehicles.

How does this project align with Sasol's sustainability goals?

The project aims to minimize carbon footprint and explore renewable energy options in production, aligning with Sasol's sustainability strategy.

When was the pre-feasibility study agreement announced?

The agreement for the pre-feasibility study was announced recently but the specific date is unspecified in the press release.