(Yicai Global) Sept. 13 -- Two Japanese firms, including chemicals maker Nippon Shokubai and a subsidiary of Toyota Motor, will pay about CNY230 million (USD33 million) to acquire nearly 44 percent of a battery electrolyte chemicals unit of China's Capchem Technology.

Nippon Shokubai will buy CNY202 million of new shares in Fluopont New Materials, and a Shanghai unit of Toyota Tsusho will do the same to the tune of CNY29.2 million (USD4.2 million), Capchem said in a recent statement. The buy-in will help Fluopont expand and will promote technology and market cooperation, it added.

After the deal, Shenzhen-based Capchem will remain Fluopont’s controlling shareholder, though its stake will shrink to 51.2 percent. Nippon Shokubai will own 38 percent and Toyota Tsusho’s subsidiary will own 5.5 percent.

Fluopont is building a plant to produce battery electrolyte component chemical lithium bis(fluorosulfonyl) azanide, or LiFSI, which has the potential to become the main component of battery electrolyte. Nippon Shokubai is an expert in the technology to produce it commercially, while Toyota Tsusho has a worldwide sales network, according to Capchem.

Fluopont initially planned to build a plant with an annual production capacity of 2,400 tons. The project’s first 1,200-ton phase began trial production early this year. With two Japanese shareholders in place, the company will expand that plan to 10,000 tons a year, Capchem said.

Compared with the main conventional power battery electrolyte component lithium hexafluorophosphate, or LiPF6, LiFSI is better in many ways, though it is more expensive and difficult to produce. But with advances in production technology and demand for better batteries, the use of LiFSI has been gaining ground in recent years.

Capchem's shares [SHE: 300037] fell 0.8 percent to close at CNY42.02 (USD6.10) today.

Editor: Emmi Laine, Xiao Yi