BUSINESS Chemical company plugging into booming electric vehicle industry

BUSINESS

Chemical company plugging into booming electric vehicle industry

SHINE

19:14, April 02, 2021

The electric vehicle market is quickly expanding. (Photos: Shine.com)

Electric vehicles are now a lucrative global business distinct from traditional and emerging vehicles, so everyone — including material providers — wants a piece of the action.

Lanxess AG, Germany’s fourth-largest chemical company, is partnering with leading Chinese lithium battery materials maker Guangzhou Tinci Material Technology to tap into the European electrical vehicle market, the German chemical company announced today.

“The automotive industry, especially the electric vehicle industry, has been surprising us since the second half of 2020," said Ming Cheng Chien, president for Asia-Pacific of Lanxess. "Overall sales in the sector account for about 20 percent of total automotive revenue, which greatly helped our company reach its financial goal."

"For example, demand for our light-weight materials, which help vehicles travel farther with the same amount of electricity and extend battery life, exceeds supply in China," he said. "Our light-weight material plant in Changzhou, Jiangsu Province, isn't adequate to meet demand, so we're considering ways to increase our production capacity."

The booming electric vehicle market convinced Lanxess to expand into the lithium battery business.

“The production of electric vehicles is accelerating," said Ming. "In Europe, many new battery plants are being built, which is a huge opportunity for us, especially in terms of chemical materials used to make lithium batteries. Our company is partnering with Tinci Material, a leading Chinese lithium battery materials maker, to produce chemical materials for lithium batteries."

"Production will begin next year in our plant in Leverkusen, Germany," he said. "This is a win-win for the two companies. We can learn from their expertise and experience, and they can become local suppliers for European battery makers."

Ming Cheng Chien, president for Asia-Pacific of Lanxess AG, introduces the company’s business plan during a media event.

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