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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed on June 26 a loan agreement amounting to up to USD240 million (JBIC portion) with UBE C1 Chemicals America, Inc. (UCCA), a US subsidiary of UBE Corporation (UBE). The loan is co-financed with MUFG Bank, Ltd., Mizuho Bank, Ltd., and The Norinchukin Bank, bringing the total co-financing amount to USD400 million.
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This loan is intended to finance the funds necessary for UCCA to conduct the manufacturing and sales business of organic solvents in the United States. These solvents, including dimethyl carbonate (DMC) and ethyl methyl carbonate (EMC), are mainly used in automotive lithium-ion batteries. The loan will mainly be used to build a new facility.
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Currently, all DMC and EMC used in lithium-ion batteries for vehicles produced in the US are imported from abroad. Against this backdrop, from the perspective of strengthening supply chain resilience, there are high expectations for UCCA among Japanese automotive battery manufacturers and electrolyte manufacturers operating in the US, because UCCA plans to be the first domestic producer of DMC and EMC in the country. The loan will contribute toward maintaining and improving international competitiveness by supporting UBE’s overseas expansion, thereby enhancing the supply chain resilience of Japan’s automotive and chemical industries through UCCA.
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In addition, UBE has set a goal to reduce its operational greenhouse gas emissions to net zero by 2050 and to increase the sales ratio of environmentally friendly products and technology solutions to 60% by 2030. The loan will also support these efforts by the company.
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As Japan's policy-based financial institution, JBIC will continue to provide financial support to help with efforts to enhance the supply chain resilience of Japanese industries and assist Japanese companies in the overseas expansion of their businesses.
