Cabot Corporation announced today that it has entered a definitive agreement to acquire Tokai Carbon (Tianjin) Co., Ltd from Tokai Carbon Group for $9 million, subject to customary closing adjustments. The carbon black manufacturing facility was commissioned in 2006 and is located in close proximity to Cabot’s current carbon black and specialty compounds facility in Tianjin, China. The transaction is expected to close in the second fiscal quarter of 2022.
Cabot said in a press release that the acquisition is expected to support the growth of Cabot’s Battery Materials product line, while continuing to serve existing carbon black customers. The growth of electric vehicles has led to rapid development in lithium-ion batteries. Conductive carbon black additives play a key role in battery chemistry to increase the range and cycle life of lithium-ion batteries. The site currently can produce up to 50,000 metric tons of carbon black annually and Cabot plans to invest to upgrade the capabilities to produce battery grades.
Cabot will run the plant and intends to continue to supply current customers while conducting technology upgrades. The upgrades to manufacturing and environmental equipment will enable the site to manufacture conductive carbon black for battery materials as well as other carbon black products while meeting environmental standards.