June 21, 2024
Company
Central Glass Co., Ltd.
Representative
Rep. Director, President & CEO
Kazuhiko Maeda
（Securities Code 4044 TSE Prime）
Contact
Corporate Communications Dept.
General Manager Hidekazu Hashimoto
（TEL. +81-3-3259-7062）
Notice of Toll Manufacturing Agreement for Electrolytic Solution Manufacturing in
North America with Duksan Electera
On June 10
th
, Central Glass Co., Ltd. and US subsidiary Central Glass International,
Inc.(“CGI”) have decided to enter into a toll manufacturing agreement for the manufacture of
electrolytic solution for lithium-ion batteries (electrolyte) in North America with Korean
electrolytic solution manufacturer Duksan Electera Co., Ltd. (Gongju-si, Republic of Korea,
“Duksan”) and its subsidiary Duksan Electera America, Inc. (“DSETA”), as described below.
1. Reason and Purpose of Agreement
Central Glass Co., Ltd. currently provides our global customer base electrolytic solution from
our manufacturing sites in Japan, Korea, China, and the Czech Republic. After considering
how to develop our supply chain to comply with the Inflation Reduction Act (“IRA”) while
the North American market is predicted to expand, at this time we have determined that we
can establish a prompt and stable supply system for the North American market by
combining our proprietary electrolytic solution manufacturing knowledge and Duksan’s
state of the art production system.
Duksan’s construction of a 60,000 ton/year electrolyte plant in Tennessee, USA, is scheduled
to be completed at the end of June. The plant will be equipped with the latest automated
technology and will have high production efficiency and an excellent quality control system.
We believe that this collaboration will enable both companies to establish themselves as
competitive electrolyte suppliers in the North American region after the implementation of
the IRA.
2. Overview of Agreement
(1) Parties Central Glass Co., Ltd.
Central Glass International, Inc.
Duksan Electera Co., Ltd.
Duksan Electera America, Inc.
(2)Details CGI will assign DSETA as the sole contract manufacturer of electrolytes in North
America.
The maximum commissioned volume to DSETA will be 60,000 tons per year.
3. Overview of Duksan
(1) Company Name
Duksan Electera Co., Ltd.
(2) Location
Gongju-si, Chungcheongnam-do, Republic of Korea
(3) Representative
President Lee Suwan
(4) Business Activities
Manufacture and sales of electrolytes for lithium-ion
batteries
(5) Paid-in Capital
635 million Korean won
(6) Sales
151 million Korean won (Year ending Dec. 31, 2023）
(7) Established
2021
(8)
Relationship between
Central Glass and
Relevant Companies
Capital Relations
Nothing of note.
Personnel Relations
Nothing of note.
Business Relations
Nothing of note.
Related Party Status
Nothing of note.
(9) URL
https://www.dselectera.com
4. Schedule
Decision to enter agreement: June 10, 2024
Agreement date: June 12, 2024
5. Impact on Future Business Results
The impact of this agreement on Central Glass consolidated financial results for the year
ending March 31, 2025 is expected to be insignificant.
We will continue contributing to society by using our advanced research and development
capabilities to solve environmental issues through the development, manufacture, and sales
of high-performance electrolytes.
