August 24, 2007 -- Hitachi Chemical Co. plans to expand output capacity for graphite materials used in lithium ion battery electrodes by 20 per cent by March 2008 in response to growing demand. The Japanese company will invest 500 million yen (US$4.3 million) in its Yamazaki plant to increase production capacity by expanding the electric furnace that sinters graphite at 3,000 degrees Celsius and adding press equipment for molding the electrodes. The plant can currently turn out enough electrode materials for 30 million mobile phones per month. The expansion will raise that by 20 per cent by next spring to the equivalent of 36 million mobile phones.

Through the expansion, the company aims to double sales of anode materials in the next three to four years from around 10 billion yen at present. It is looking to increase its global market share from 40 per cent to 50 per cent by 2010. Despite problems that have surfaced with some lithium ion batteries, demand remains robust thanks to expansion of mobile phone and personal computer production. Hitachi Chemical says the market is growing at a 15 per cent annual pace. Consequently, it plans to continue investing in expansion of production facilities even after next spring.

Source: Asia Pulse
Source: Factiva