Nippon Shokubai will expand LiFSI capacity in China to meet rising EV and ESS battery market demand.
Nippon Shokubai Co., Ltd. has announced plans to significantly expand its production capacity for LiFSI (lithium bis(fluorosulfonyl)imide), marketed under the trade name IONEL™, at its joint venture company in China, Hunan Fluopont New Materials Co., Ltd. LiFSI is a key lithium salt used in electrolytes for lithium-ion batteries (LIBs), playing an important role in improving battery performance for electric vehicles (EVs) and energy storage systems (ESS). The company will add new production facilities with an annual capacity of 10,000 metric tons (MT/Y), further strengthening its supply capabilities to support the rapidly growing global demand for advanced battery materials.
This strategic investment reflects Nippon Shokubai’s commitment to supporting the expanding lithium-ion battery market, particularly in China, which remains the world’s largest LIB market. Demand for LiFSI has been rising sharply as battery manufacturers seek better performance characteristics for EV batteries, including longer driving range, faster charging speeds, improved durability, and stronger output under low-temperature conditions. LiFSI is increasingly preferred because it enhances battery stability and efficiency, making it an essential component for next-generation battery technologies.
Hunan Fluopont has already been increasing its production capacity through debottlenecking initiatives over the past few years. In fiscal year 2022, the company’s production capacity reached 1,200 MT/Y, and it has since doubled to 2,400 MT/Y. However, with the market expanding much faster than anticipated, especially due to rising demand from both EVs and ESS applications, further investment has become necessary.
In recent years, the ESS sector has emerged as another major growth driver for lithium-ion batteries. As renewable energy adoption increases globally, the need for reliable energy storage solutions has become more critical. ESS applications require high-performance batteries capable of delivering stable and long-lasting power, and LiFSI plays an important role in ensuring such performance. This trend has created additional pressure on suppliers to secure sufficient production capacity and maintain stable supply chains.
To address this growing demand, Nippon Shokubai will implement the capacity expansion in phases. The company aims to establish a stronger and more reliable supply structure that can support both current and future market needs. Once the expansion is complete, the total LiFSI production capacity at Hunan Fluopont will increase from the current 2,400 MT/Y to 12,400 MT/Y by 2027.
According to the announced schedule, the first phase of the expansion will begin commercial operations in fiscal year 2026, adding 3,000 MT/Y of production capacity. The second phase is planned for fiscal year 2027, contributing an additional 7,000 MT/Y. This phased ramp-up will allow the company to align production growth with market demand while ensuring operational stability and efficiency.
The new facilities will be constructed at the existing plant site of Hunan Fluopont, allowing the company to maximize infrastructure efficiency and reduce development time. The project will be financed through Hunan Fluopont’s own funds and borrowings, with no additional capital contribution or further direct investment expected from Nippon Shokubai.
Through this expansion, Nippon Shokubai aims not only to meet medium- and long-term market demand but also to strengthen its competitive position in the LiFSI business globally. By ensuring a stable and scalable supply of this critical battery material, the company seeks to support the sustainable growth of EVs and ESS markets while reinforcing its role as a leading supplier in the advanced battery materials industry.
