Cabot Corporation recently announced that its wholly-owned subsidiary Cabot (China) Investment Co., Ltd. has reached an agreement to acquire China's leading carbon nanotubes (CNTs) at a price of USD 115 million (including all payment obligations and contingent payments) ) Producer SZSS Nano Material Technology Co., Ltd. The acquisition has greatly enhanced Cabot's market position and formulation capabilities in the rapidly growing battery market, especially in China, which is the world's largest and fastest-growing electric vehicle market.
As the world's second largest carbon nanotube manufacturer, SZSS has the ability to manufacture dry powder carbon nanotubes and slurries, and has a recognized successful business record in the lithium battery market. The addition of the carbon nanotube business enhances Cabot ’s conductive carbon product line, including today ’s VULCAN XC series carbon black, PBX® high-performance carbon additives for advanced lead-acid batteries, and LITX® conductive additives for lithium-ion batteries , And the recently announced ATHLOS ™ carbon nanostructures. With this acquisition, Cabot will be the only supplier of carbon additives with commercially successful carbon black, carbon nanotubes, carbon nanostructures and dispersion technology.
"SZSS fully complies with our growth strategy in the formulation field and provides a new technology platform for our energy materials business," said Zhu Ji, senior vice president of Cabot Corporation, president of the high-performance materials business, and president of the Asia Pacific region. "Combining SZSS's leading carbon nanotubes and dispersion capabilities with our high-performance carbon additive technology and battery expertise will create new opportunities to expand our position in the rapidly growing energy storage market. Consolidate our global leadership in high-performance carbon additives and enable us to provide new and innovative solutions to improve battery performance at the best price-performance ratio. "
Battery manufacturers are increasingly using composite conductive agent (CCA) dispersions to improve performance and reduce material costs, and carbon nanotubes are the fastest growing conductive carbon additives in energy storage.
At present, the world's leading lithium battery manufacturers: Samsung SDI, BYD, Guoxuan Hi-Tech-Volkswagen 30% shareholding 30%, AVIC lithium battery and other international and domestic leading lithium ion battery manufacturers are using the company's products.
"This acquisition provides Cabot with a unique opportunity to create world-class formulation solutions and provide customers with a more comprehensive product to meet their needs," Jim Cabot Vice President and General Manager of Energy Materials Business Makuc said.
SZSS's revenue in the past 12 months was US $ 28 million, and the combined business of Cabot's Energy Materials Business Unit and Sanshun will generate approximately US $ 50 million in revenue. Revenues from the continued growth of electric vehicles and other lithium battery storage applications are expected to grow at a rate of 20-25% over the next five years, making it an important part of Cabot ’s specialty chemicals business portfolio.
SZSS opened a new carbon nanotube plant in China in November 2018, which has sufficient capacity to support growth in the next few years. The company will be managed as part of Cabot's global energy materials business in Cabot's high-performance chemicals division. Both parties are expected to complete the transaction by the end of March 2020.