Novolyte Technologies Completes Transaction with Foosung Co., Ltd.
Joint Venture Creates Global Integrated Supplier of Lithium Battery Electrolytes
CLEVELAND, OH — JANUARY 31, 2011 — Novolyte Technologies, a world leading manufacturer and supplier of specialty electrolyte materials for lithium-ion battery and energy storage applications, high performance solvents and other specialty chemicals, today announced that it has completed its transaction with Foosung Co., Ltd., a leading global producer of Lithium Hexafluorophosphate (LiPF6) used for lithium batteries, forming a new joint venture that creates an integrated global producer of lithium-ion battery electrolytes, a key component in the rapidly growing market for lithium batteries used in hybrid electric vehicles and consumer electronics. This deal was first announced on September 1, 2010.
The U.S.-based new joint venture entity retains the Novolyte Technologies name and is managed by Novolyte's existing management team from its Cleveland headquarters. Concurrent with the formation of this joint venture, Novolyte renamed its solvents, phosphines, and custom manufacturing businesses Novolyte Performance Materials, LLC, which will be operated separately by Novolyte's current management team. Novolyte is a portfolio company of the private equity firm Arsenal Capital Partners (New York).
Foosung Co., Ltd. is the sole producer in Korea and one of four global producers of high purity LiPF6, a specialty salt used for electrolyte manufacture. In addition to supplying technology to Novolyte, Foosung will invest approximately $30 million in the joint venture and contribute a new lithium salt plant. Novolyte contributed its energy storage business to the joint venture, including a $20.6 million award in stimulus funds for expansion in the USA from the Department of Energy under the Recovery Act - Electric Drive Vehicle Battery and Component Manufacturing Initiative, as well as $1.12 million in Ohio Third Frontier funding in collaboration with the Great Lakes Energy Institute at Case Western Reserve University to develop and commercialize advanced electrolyte materials for next-generation Lithium-ion batteries.
"Novolyte is the only electrolyte business with a global manufacturing base having operations and technology centers in both North America and Asia. We are now the first global electrolyte producer that is backward integrated," said Edward Frindt, Novolyte's CEO. "This Joint Venture with Foosung enables us to better serve our customers worldwide with leading electrolyte technologies and a more efficient supply chain."
John Televantos, a Partner at Arsenal Capital, said, “This venture positions Novolyte and Foosung to become the leading global supplier of lithium battery electrolytes, a key performance component in the fast growing market of lithium-ion batteries for consumer, automotive and industrial markets. We look forward to our strategic partnership with Foosung in advance of the robust growth in the lithium-ion battery market.”
Novolyte is the leading producer of primary (non-rechargeable) and secondary (rechargeable) Lithium electrolyte materials in North America, Europe and Greater China and a leading provider of electrolyte and ultracapacitor solutions worldwide. Novolyte serves its global customer base through its manufacturing facilities in Baton Rouge, Louisiana, and Suzhou, China, supplying cost-effective and high-performance electrolyte solutions under the Purolyte® brand. Novolyte supports its high-purity formulation capabilities and proprietary technology from its U.S. and China-based technical centers. The business serves a broad range of end-use products requiring highly functional electrolytes such as consumer electronics, telecommunications, military, medical, aerospace, ultracapacitors, grid storage and electric vehicles.
About Novolyte Technologies, Inc.
Novolyte Technologies is a world leading manufacturer and supplier of specialty electrolyte materials. Novolyte Performance Materials, LLC, is a world leader in the production and supply of high performance solvents, aryl phosphorus derivatives, and technically demanding custom manufactured products. The Companies are headquartered in Cleveland, OH. For more information, visit www.novolyte.com.
About Foosung Co., Ltd.
Foosung Co., Ltd. is a Korea-based company mainly engaged in the fluorine chemical industry. The Company produces specialty gases, including semiconductor gases, mixture gases, calibration standard gases and ultra-high purity gases, and fluorine compounds, such as inorganic fluorine compounds and organic fluorine compounds, used in the steel making, semiconductor, construction and environmental industries. For more information, visit, www.foosung.com.