CAPCHEM Technology, a Chinese supplier of fine chemicals, said it will invest US$260 million to build a lithium‑ion battery electrolyte solvent plant in Saudi Arabia and up to 200 million yuan (about US$28.6 million) to expand capacity at its electrolyte plant in Poland.

The Saudi factory will be located in the Yanbu Heavy Industrial Park. Shenzhen‑based Capchem will be the sole owner initially but plans to bring in local third‑party investors later to boost localization.

The new facility will have annual production capacity of 200,000 tonnes of carbonate solvents and 100,000 tonnes of ethylene glycol, and will include supporting utilities, environmental protection systems, warehousing and logistics, and safety infrastructure. Construction is expected to be completed within three years.

Carbonate solvents are a core component of lithium‑ion battery electrolytes, while ethylene glycol is a key upstream raw material used to produce those solvents.

Capchem said the Saudi plant will strengthen its international production footprint and global supply chain, help ensure a stable supply of core raw materials for its overseas electrolyte factories, reduce cross‑regional logistics costs and supply‑chain risks, improve service response and customer retention for international clients, and expand its overseas third‑party customer base.

The company added that the plant will leverage Saudi Arabia’s favorable location and mature logistics network to efficiently serve European and Southeast Asian markets, and will also supply the U.S. market until its planned U.S. factory becomes operational.

In a separate announcement, Capchem said it will begin a second phase of expansion at its Polish factory in Śrem, adding 50,000 tonnes of annual electrolyte production capacity. That project is expected to be completed within two years.

The first phase of the Śrem factory, with an annual capacity of 40,000 tonnes of lithium‑ion battery electrolyte, went live in April 2023. Its clients include LG Energy Solution, Samsung SDI, Volkswagen Group’s battery unit, and the Ultium Cells plant in Ohio.(SD-Agencies)