Nippon Shokubai Kitakyushu Plant Expansion Delayed to December 2028

Nippon Shokubai Revises Kitakyushu Plant Expansion Plan

Nippon Shokubai Co Ltd has partially revised its expansion plan for electrolyte production used in lithium-ion batteries, including batteries for electric vehicles. The company is developing a new Kitakyushu Plant in Wakamatsu Ward, Kitakyushu City, to expand manufacturing capacity for IONEL, its lithium bis (fluorosulfonyl)imide (LiFSI) product used as an electrolyte in lithium-ion batteries. The revised schedule moves the expected start of commercial operations from July 2028 to December 2028. The delay is attributed to difficulties and delays associated with land acquisition for the new facility.

Investment Increased to JPY 43 Billion

The planned investment for the Kitakyushu project has increased from approximately JPY 37.5 billion to JPY 43 billion. Nippon Shokubai Co Ltd attributed the higher projected cost to increases in prices for petroleum-related products and resources such as copper, along with higher construction expenses. Construction costs have also been affected by increasing demand for construction activity. Despite these cost pressures, the company has retained the planned production capacity of 3,000 tons at the new facility. This means the investment increase and schedule revision do not change the targeted production scale of the plant.

Production Capacity Remains Unchanged Despite EV Market Uncertainty

Although the future outlook for the electric vehicle market remains uncertain, Nippon Shokubai has not revised the planned 3,000-ton production capacity of the new facility. The plant is intended to strengthen production of LiFSI-based electrolyte materials for lithium-ion batteries, supporting applications that include EV batteries. The company is therefore proceeding with the same capacity target while adjusting the project schedule and investment estimate. Japan remains the location of the planned manufacturing expansion, with the facility being constructed in Kitakyushu City. The revised commercial-operation target is now December 2028 rather than the previously planned July 2028 start.

Government Subsidy Remains Part of the Original Plan

The revised project continues to include government support that had already been approved for the investment. Nippon Shokubai expects to receive a subsidy of up to JPY 12.5 billion from the Ministry of Economy, Trade and Industry as originally planned. The subsidy remains unchanged despite the increase in the projected investment and the postponement of commercial operations. The continued support is expected to contribute to the company's investment in expanded LiFSI electrolyte production. Together with the maintained 3,000-ton capacity target, the subsidy indicates that the company continues to advance the Kitakyushu expansion while responding to higher project costs and the delayed land-acquisition process.

Frequently Asked Questions

When is the Nippon Shokubai Kitakyushu Plant now expected to begin commercial operations?
The Nippon Shokubai Kitakyushu Plant is now expected to begin commercial operations in December 2028 following delays in land acquisition. The original target was July 2028, meaning the revised schedule represents a five-month postponement. The planned production capacity remains unchanged at 3,000 tons despite the schedule revision and uncertainty surrounding the future EV market. Nippon Shokubai has also increased the projected investment from approximately JPY 37.5 billion to JPY 43 billion because of higher material, resource, and construction costs. The company still expects to receive up to JPY 12.5 billion in government subsidy support.