Mitsubishi, Other Companies Boost Investments in Lithium-Ion Battery Cathode Production

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Researched by Industrial Info Resources (Sugar Land, Texas)--Although nickel-metal hydride batteries were used to power the first electric vehicles, the market quickly demanded smaller, lighter, and more cost-effective power sources. Different types of lithium-ion batteries (LiB) are now being used. Each type has pros and cons, but each has four basic components: an anode, a cathode, a separator, and an electrolyte solution.

Some companies focus on the manufacture of one or all of these components, or any combination in between. Mitsubishi Chemical Corporation (Tokyo, Japan), which focuses on manufacturing all four components, joined with Mitsubishi Pharma Corporation in October 2005, which was around the same time Mitsubishi Chemical began to pilot the manufacturing of LiB cathode material, to form Mitsubishi Chemical Holdings Corporation (TYO:4188) (Tokyo).

Mitsubishi Chemical has been dealing in electrolyte and anode production for the last 20 years, and cathode production for the last five, and now enjoys 25% of the world market share in electrolyte production. Its first cathode-manufacturing facility was brought online last October in Kurashiki, at the Mizushima Plant, some 550 kilometers southwest of Tokyo in the Okayama prefecture. The Mizushima Plant began producing at a capacity of 600 metric tons per year of nickel-cobalt cathode material; however, shortly after production began, Mitsubishi Chemical announced that it was going to begin expansion efforts on cathode production in Kurashiki. Cathode material produced by Mitsubishi Chemical is produced from lithium cobalt oxide, and is therefore less costly because the cobalt content is minimal. Mitsubishi Chemical has developed technology to control both the process and modification of the original particle structure while maintaining performance. Before application of the new technology, nickel-cobalt-manganese (NCM) LiB produced by Mitsubishi Chemical had a nickel-to-manganese to cobalt ratio of about 33%. Batteries produced now contain about 10% cobalt. The $11 million expansion commenced earlier in the year; when completed sometime during the fourth quarter, the Mizushima Plant will have a cathode material production capacity of 2,200 metric tons per year. More phases are rumored to follow.

Toda Kogyo Corporation (TYO:4100) (Otake, Japan), which is known as a leader in magnetic recording materials, is also seeking to expand its facilities. Toda Kogyo currently produces 100 metric tons per year of manganate powder that is utilized by LiB manufacturers to produce NCM batteries or manganese oxide spinel (MnO) batteries. MnO batteries offer more power for a lower cost than those that utilize cobalt due to increased surface area. As of now, Toda Kogyo plans to invest $36 million into three expansion phases that will drive the production capacity to more than 2,000 metric tons per year at its Sanyo-Onoda facility, which is some 900 kilometers southwest of Tokyo in the Yamaguchi prefecture. Phase I expansion is scheduled to commence relatively soon and should conclude next second quarter. If prospects are still positive, Phase II will commence soon after the conclusion of Phase I. Phase III is scheduled to conclude sometime during the second quarter of 2013.

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