Sumitomo Metals and Chuo Denki Integrate Secondary Battery Material

Sumitomo Metal Industries and Chuo Denki Kogyo announced on Wednesday they reached an agreement to transfer Sumitomo Metals’ secondary battery material business to Chuo Denki effective on December 1st. Both companies build up capital ties and step up the secondary battery material business as a group.

Chuo Denki integrates Sumitomo Metals’ black lead business on December 1st and makes Sumikin Molycorp its subsidiary. Sumitomo Metals acquires Chuo Denki’s 4 million ordinary shares and raises the equity stake to 38.24% from 29.29%.

Lithium ion battery is mainly used for mobile phones or personal computers. Nickel hydride battery is used for hybrid cars. Lithium ion battery is expected to be used to automobile, too. Negative-electrode material is mainly black lead while expected to shift to alloy materials in future with great capacity and long life.

Chuo Denki becomes to lineup wide-range secondary battery and electrode materials including manganese sulfate chemical products for lithium ion battery’s positive electrode and other negative-electrode materials.

Sumitomo Metals has cutting-edge material technology for electrode materials. Chuo Denki holds the top share of hydrogen storing alloy for nickel hydride battery’s negative-electrode material. Sumikin Molycorp is a leading company of magnet alloy.