Battery
Nippon Shokubai to sharply scale up lithium salt output in China amid EV & storage boom
The company will add 10,000 metric tons per year of production capacity at Hunan Fluopont New Materials
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By ICN Bureau | April 30, 2026
Nippon Shokubai has announced a major capacity expansion for LiFSI, a key lithium salt used in lithium-ion battery electrolytes.
The company will add 10,000 metric tons per year of production capacity at Hunan Fluopont New Materials, its joint venture in China.
The move is aimed at reinforcing Nippon Shokubai’s global supply position as demand accelerates across both electric vehicle and energy storage system markets.
China—the world’s largest lithium-ion battery market—is seeing surging demand for LiFSI as manufacturers push for higher battery performance, including longer life cycles, faster charging capabilities, and improved low-temperature output.
At Hunan Fluopont, production capacity has already climbed through incremental upgrades, rising from 1,200 MT/Y in FY2022 to 2,400 MT/Y at present.
But the company says the market is now entering a new phase of expansion, driven not only by EVs but increasingly by ESS applications. That shift is forcing a broader upgrade of supply infrastructure.
In response, Nippon Shokubai will implement a phased expansion program designed to secure a stable long-term supply base for both EV and ESS demand growth. The company is targeting a total LiFSI production capacity of 12,400 MT/Y by 2027.
The investment is intended to position the group ahead of anticipated market expansion while strengthening its competitive standing in the fast-growing battery materials sector.
With this step, Nippon Shokubai is signalling a clear push to anchor itself more deeply in the global lithium-ion battery supply chain as electrification demand continues to accelerate.
