Toda Kogyo and ITOCHU Agree in Li Battery Electrode Material JV in North America

Toda Kogyo Corp. and ITOCHU Corporation announced on Friday the firms concluded a memorandum of understanding to start a joint venture to manufacture positive electrode materials for lithium ion batteries in North America. ITOCHU will invest in Toda’s existent subsidiaries in USA and Canada while they will establish a new plant in USA. The companies will organize the integrated productive system of positive electrode materials in the area and expand the market share in North America where lithium ion battery demand is expected to grow up.

ITOCHU will acquire 50% shares in Toda’s 100% subsidiaries within this month, Toda America in Illinois and Toda Advanced Materials in Ontario. Toda America produces positive electrode materials for lithium ion batteries while Toda Advanced Materials manufactures raw materials for positive electrodes. Toda Kogyo covers manufacturing, quality control and development while ITOCHU supports material and equipment procurement, sales and distribution.

Toda America will construct a new plant in Michigan with investment at US$ 70 million (approximately 7 billion yen) to produce nickel base, manganese base and ternary positive electrode materials. The output is planned at 4,000 tonnes per year. The construction will start this spring and the operation will be launched in January 2011.