Notice of Toll Manufacturing Agreement for Electrolytic Solution Manufacturing in
North America with Duksan Electera
On June 10
th
, Central Glass Co., Ltd. and US subsidiary Central Glass International,
Inc.(“CGI”) have decided to enter into a toll manufacturing agreement for the manufacture of
electrolytic solution for lithium-ion batteries (electrolyte) in North America with Korean
electrolytic solution manufacturer Duksan Electera Co., Ltd. (Gongju-si, Republic of Korea,
“Duksan”) and its subsidiary Duksan Electera America, Inc. (“DSETA”), as described below.
1. Reason and Purpose of Agreement
Central Glass Co., Ltd. currently provides our global customer base electrolytic solution from
our manufacturing sites in Japan, Korea, China, and the Czech Republic. After considering
how to develop our supply chain to comply with the Inflation Reduction Act (“IRA”) while
the North American market is predicted to expand, at this time we have determined that we
can establish a prompt and stable supply system for the North American market by
combining our proprietary electrolytic solution manufacturing knowledge and Duksan’s
state of the art production system.
Duksan’s construction of a 60,000 ton/year electrolyte plant in Tennessee, USA, is scheduled
to be completed at the end of June. The plant will be equipped with the latest automated
technology and will have high production efficiency and an excellent quality control system.
We believe that this collaboration will enable both companies to establish themselves as
competitive electrolyte suppliers in the North American region after the implementation of
the IRA.
2. Overview of Agreement
(1) Parties Central Glass Co., Ltd.
Central Glass International, Inc.
Duksan Electera Co., Ltd.
Duksan Electera America, Inc.
(2)Details CGI will assign DSETA as the sole contract manufacturer of electrolytes in North
America.
The maximum commissioned volume to DSETA will be 60,000 tons per year.
3. Overview of Duksan