Chuo Denki Kogyo to Double Graphite Output with New Plant

Japanese major ferroalloy maker, Chuo Denki Kogyo started construction of new graphite making facility in Myoko plant. The new plant for negative pole material of lithium ion battery will be completed in February 2011 to double the annual output to 2,000 tonnes including existing Osaka plant. The firm invests the first step for expansion to 5,000 tonnes level by 2020. The firm tries to expand functional materials business including hydrogen storage alloy and rare earth magnet alloy as driving force for next growth.

The firm builds new graphite plant for around 500 million yen including continuous burning furnace. The firm starts the test operation in April 2011 and tries to get approval from the users starting the commercial operation in 2011. The president Ryo Someya said the new plant is the first step toward annual 5,000 tonnes of capacity. The firm tries to find the chance for the next step while the firm tries to get order for automotive battery application.

The firm already expanded the battery related materials capacity at Myoko in the year. The annual output capacity increased to 5,000 tonnes for hydrogen storage alloy, which is negative pole of nickel metal hydride cells, and to 6,000 tonnes for manganese inorganic chemicals including positive electrode of lithium ion battery. The firm also tries to develop negative pole alloy with larger capacity for lithium ion battery through tie-up with Sumitomo Metal Industries.

Chuo Denki Kogyo’s subsidiary, Chuden Rare Earth eyes expansion of rare earth magnet alloy from current 3,000 tonnes per year to 4,000 tonnes to serve growing demand for automotive applications. The firm will complete the new recycle plant construction in Vietnam in December to recover annual 200 tonnes of rare earth from magnet scrap, which represents a third of rare earth requirement for magnet alloy.

Chuo Denki Kogyo acquired the graphite business and Sumikin Molycorp with magnet alloy business from Sumitomo Metals last year. Chuo Denki Kogyo tries to expand the functional materials business with 10 billion yen of sales to 15 billion yen in 5 years and 20 billion yen in 10 years.