Dow Chemical Co. and Japanese chemical company Ube Industries Ltd. said Wednesday they've agreed to form a joint venture to manufacture electrolytes for lithium-ion batteries which are increasingly being used in cars among other things.
The 50-50 joint venture, named Advanced Electrolyte Technologies LLC, is expected to be finalized later this year pending regulatory approval.
Dow said the joint venture will allow it to expand its alternative energy offerings.
"The growing demand for alternative energy production and energy storage systems places technologies such as advanced batteries for electric/hybrid vehicles and power generation at the very center of the global mega-trends," said Heinz Haller, Dow executive vice president and chief commercial officer.
The joint venture's first manufacturing facility is expected to be built at Dow's home base in Midland, Mich. for startup next year.