Kureha, Itochu, Kuraray and the Innovation Network Corporation of Japan (INCJ) have entered into an agreement to support the global growth of Kureha Battery Materials Japan (KBMJ). KBMJ is a subsidiary of Kureha, and it handles materials for lithium-ion batteries (LiB).
The ratio of voting rights between Kureha and the Strategic Partners following the capital participation is represented in the chart above. Kureha will retain a majority of voting rights in KBMJ and will manage its business operations. Representatives from the Strategic Partners will be dispatched to KBMJ's Board of Directors to establish an effective and transparent management structure. (Graphic: Business Wire)
The four strategic partners will invest a total of ¥20.0 billion in KBMJ. Kuraray and the INCJ will participate in third-party allocation and acquire new equity stakes.
Kureha and Itochu have jointly established KBMJ for manufacturing and marketing CARBOTRON P and selling LiB binders. CARBOTRON P is a hard carbon anode material used for LiBs. Kuraray had entered into an agreement with KBMJ for joint commercialization of Biocarbotron, a plant-derived hard carbon anode material for LiBs.
In 1991, the world's first commercial LiB was launched and CARBOTRON P was used in the battery. The requirement for higher standards, reliability and performance in electric cars has led to increased demand on LiBs. CARBOTRON P has demonstrated stability and high performance in charging and discharging.
Over the next two years, KBMJ plans to issue shares through third-party allocation to Kuraray, Itochu and the INCJ, and acquire around ¥14.5 billion. Non-voting preferred shares are to be allocated to the INCJ. Kureha is to underwrite around ¥5.5 billion in ordinary shares. The combined financing will total up to ¥20.0 billion.
KBMJ will be allocating these funds for establishing a larger LiB global supply structure.