UBE Expands Battery Separator Capacity to Meet Rising Hybrid Vehicle Demand

UBE Corporation announced plans to significantly expand its battery separator manufacturing capacity during its business overview briefing held on May 20. The company stated that the production increase is intended to address accelerating demand from hybrid vehicle manufacturers. According to the company, battery separator production capacity will rise by approximately 1.8 times compared to the current output level as electrified vehicle demand continues to strengthen across the automotive industry in Japan and global markets.

UBE had previously decided to increase battery separator production by around 30% beginning this autumn. However, the company later determined that the planned expansion would not be sufficient to support expected future market demand. President Yuki Nishida explained that the company will proceed with an additional investment plan amounting to roughly 50% more than the originally announced expansion strategy. The revised investment approach reflects stronger-than-anticipated demand growth for battery-related materials used in hybrid and electrified vehicle applications.

UBE Battery Separator Capacity Expansion Plan

The production capacity increase will be implemented in two separate phases over the coming years. The company stated that the first phase will begin during the fiscal year ending March 2027, while the second phase is scheduled to start in fiscal year 2029. This phased investment strategy is intended to provide production flexibility while allowing UBE to gradually align manufacturing capacity with evolving market requirements in the electrification sector.

In addition to battery separators, UBE is also evaluating opportunities to strengthen production capacity for dimethyl carbonate (DMC) and ethyl methyl carbonate (EMC), both of which are important materials used in lithium-ion batteries. The company indicated that future expansion decisions for these materials will depend on overall market demand trends. The move highlights UBE’s broader strategy to reinforce its position within the growing battery materials supply chain linked to electrified mobility technologies.

Alongside its battery-related investment announcements, the company also revealed plans to reduce production of butadiene rubber at its Chiba manufacturing facility. Butadiene rubber is widely used in tire manufacturing, and the company stated that the decision was influenced by rising raw material costs. UBE confirmed that it has already secured the required raw materials and expects to fully recover production operations at the facility during July.

Frequently Asked Questions

Why is UBE increasing battery separator production capacity?
UBE is expanding battery separator production to address growing demand from hybrid vehicle manufacturers and the broader electrification market. The company determined that its previously planned 30% production increase would not be enough to support future demand. As a result, UBE decided to implement additional investments that will increase total capacity to approximately 1.8 times the current level. The expansion will be carried out in multiple phases over several years to align production growth with market requirements.

What additional battery materials is UBE planning to expand?
UBE is considering increasing production capacity for dimethyl carbonate (DMC) and ethyl methyl carbonate (EMC), which are important materials used in lithium-ion batteries. The company stated that future expansion decisions will depend on overall market demand conditions. These materials play a critical role in battery manufacturing and are increasingly important as electrified vehicle adoption continues to grow globally. The evaluation reflects UBE’s strategy to strengthen its presence across multiple battery material segments.

Why is UBE reducing butadiene rubber production at its Chiba plant?
UBE announced plans to reduce butadiene rubber production at its Chiba facility mainly because of rising raw material costs. Butadiene rubber is commonly used in tire manufacturing, and cost pressures have affected production operations. Despite the reduction, the company confirmed that it has secured necessary raw materials and expects to restore full production during July. The adjustment allows UBE to manage operational efficiency while continuing to stabilize supply conditions at the plant.