Signing of Cooperation Intention for 15000 Tons/Year LiPF6 Project - The strategic cooperation between Morimatsu and PGT South Korea on lithium battery materials has entered a new stage

Morimatsu (Jiangsu) Heavy Industry Co., Ltd. and PGT (a fine chemicals production company) signed a Letter of Intent on September 23, 2024 at the headquarters of PGT in Seoul, South Korea, to jointly develop a production unit with an annual output of 15,000 tons of LiPF6 (modular delivery) at a time when the investment in global new energy vehicle industry chain is on the rise. Mr. Nishimatsu Koei, CEO of Morimatsu International Holdings Company Limited., and Mr. Han Sung-ho, Chairman of PGT Korea, signed the Letter of Intent on behalf of their respective companies. Both parties agreed to officially launch the project after the investment confirmation process of PGT is complete. The achievement of this cooperation intention marks a further deepening of the partnership between the two parties in the field of raw materials of power battery, and also signifies that both of them will jointly respond to the rapid transformation demand of the international automotive energy market with the expertise and experience of each other in the field of power batteries.

The core mission of the collaboration is that Morimatsu (Jiangsu) Heavy Industry Co., Ltd. provides PGT with a modular solution of 15000 tons/year LiPF6. Lithium hexafluorophosphate (LiPF6) is widely used as a key electrolyte material for lithium-ion battery in multiple fields, such as electric vehicles, energy storage systems, and portable electronics. This cooperation is undoubtedly a perfect combination of the rich experience and technological advantages of Morimatsu in the design of chemical continuous production processes, as well as professional capabilities in fine chemical production of PGT.

Both parties officially signed a contract for production of 5,000 tons/year LiPF6 in June 2023, and completed the overall delivery in August 2024. Through this collaboration, Morimatsu (Jiangsu) Heavy Industry Co., Ltd. will once again provide PGT with a complete production unit for LiPF6 with an increased capacity of 15,000 tons per year, and the advanced modular design and construction technology of Morimatsu continued to be used. The modular integrated design, construction and delivery technologies have obvious advantages over the traditional engineering construction mode in terms of cost, delivery time, quality control and project risk management.

Lithium hexafluorophosphate (LiPF6) is widely used as a key electrolyte material for lithium-ion battery in multiple fields, such as electric vehicles, energy storage systems, and portable electronics. This cooperation fully utilized the rich experience and technological advantages of Morimatsu in continuous production processes and engineering of related products, as well as the professional capabilities in the field of fine chemical production of PGT. What's more, the continuous upgrading of LiPF6 production technology has also driven the rapid development of battery technology, providing the possibility for more efficient and environmental-friendly energy storage solutions, thus playing a key role in the global energy transition and sustainable development.

For Japanese and South Korean companies, especially large-scale enterprises in the international automotive lithium battery market (such as PGT), the demand for high-performance battery materials is on the rise. The demand for LiPF6 and other lithium battery raw materials is expected to continue to grow with the rapid development of electric vehicles, intelligent devices, and renewable energy storage systems, which will bring huge growth potential to the new energy vehicle industry in domestic and overseas. In addition, the support of governments globally for clean energy and technological innovation provides a favorable policy environment for the development of LiPF6 market. The cooperation between Morimatsu and PGT will make a contribution to satisfying the demand of international market for high-performance LiPF6, accelerating the upgrading and transformation of the global new energy industry.

In addition to LiPF6, Morimatsu (Jiangsu) Heavy Industry Co., Ltd. also have a wealth of technical product reserves and project experience in other lithium materials, such as electrolyte, a variety of lithium salts (such as LiPF6, hydrogen bis (fluorosulfonyl) imide, etc.), positive and negative materials preparation and other fields. The company has delivered a full set of production units and core process equipment with independent intellectual property rights in many countries.

PGT is a high-tech manufacturer engaged in AIP, raw material of cosmetics, fine chemicals, water treatment, battery electrolyte materials. PGT purses the improvement of quality of people's life in all aspects with customer satisfaction as its highest goal and environmental protection (harmonious coexistence of man and nature) as its top priority.