Showa Denko to Increase Battery Component Production

Showa Denko (TSE: 4004) has decided to expand its production capacity for VGCF™ carbon fiber composite at its Kawasaki Plant in Kanagawa Prefecture. The company anticipates growing demand, particularly for automotive lithium-ion batteries (LIBs), will drive an increase in production capacity from the current 200 tons per year to 300 tons per year by the end of 2017.

VGCF, or vapor grown carbon fiber, is added to the cathodes and anodes of lithium-ion batteries to enhance their electrical conductivity. Its fibrous structure allows for effective dispersion and reduces battery degradation during charge and discharge cycles. Furthermore, VGCF improves thermal conductivity, promoting heat dissipation from electrodes and increasing safety.

The market growth, fueled by China's expanding electric vehicle market and stricter CO2 emission regulations in Europe, has exceeded the company's previous forecasts. Showa Denko will begin increasing capacity to 250 tons per year in the first half of 2017 and aims to reach a total annual production capacity of 300 tons by the end of 2017.

As part of its "Project 2020+" strategy, the company categorizes its battery materials business as a key growth area. In addition to VGCF, Showa Denko offers other battery materials, including anode materials and aluminum foil, targeting an annual sales revenue of 30 billion yen by 2018.