09/14/2009 - Süd-Chemie and Evonik agree on technology-driven supply partnership for novel battery materials to power electric-drive automobiles

Süd-Chemie AG, Munich and Evonik Industries AG, Essen have agreed to enter into a supply partnership aimed at using novel materials in the next generation of lithium-ion batteries for automobiles and other industrial applications. By entering into this agreement, both enterprises have laid the foundation for the preferred delivery by Süd-Chemie to Evonik of the high performance energy storage material of the future, lithium iron phosphate (LiFePO4, also referred to as LFP), to be used in rechargeable lithium-ion batteries. The use of lithium iron phosphate in lithium-ion batteries will significantly improve the conditions for a swift and wide-scale introduction of more powerful electric drives for the next generation of hybrid and electric-drive vehicles.

Süd-Chemie will be responsible for manufacturing the high-grade lithium iron phosphate in line with the required specifications, and for technical customer service. With the aid of the cathode material lithium iron phosphate, Evonik intends to develop to market maturity high-powered cell components for both mobile and stationary applications via its subsidiary Evonik Litarion GmbH, focusing initially on the European market.

The main features of lithium iron phosphate which make it especially suitable for use in lithium-ion batteries are its high energy density, its high cycle stability, long life and above all, the intrinsic safety of the material.

Munich, 14 September 2009

About Süd-Chemie

Süd-Chemie (www.sud-chemie.com) is a publicly quoted (Security Identification Number ISIN: DE0007292005; WKN: 729200) specialty chemicals company headquartered in Munich, Germany and operating on a worldwide scale. Key markets served by its Adsorbents Division include the consumer goods, packaging and foundry industries, as well water treatment. Products manufactured by the Catalysts Division offer solutions for the chemical, petrochemical and refinery industries, for energy storage and hydrogen production, as well as off-gas purification. The common denominator of all Süd-Chemie products and services is the efficient and sparing use of natural resources to enhance the quality of life for humans and the environment. The Süd-Chemie Group generated sales of €1.191 billion in 2008, approx. 80% of these outside Germany. At the end of June 2009, the group employed some 6,300 people in its 80 sales and production companies worldwide.

In addition Süd-Chemie is, also via as its Canadian subsidiary Phostech Lithium Inc., Montreal, active in developing novel and environmentally-friendly battery materials. The Group focuses primarily on the development and production of lithium iron phosphate (LiFePO4, LFP) – a novel cathode material which, due to its high performance and superior safety profile, has great potential for promoting the breakthrough of a new generation of lithium-ion batteries for hybrid and electric drives in the automotive industry.

About Evonik

Evonik Industries is the creative industrial group from Germany operating in three business areas: Chemicals, Energy and Real Estate. Evonik is a global leader in specialty chemicals, an expert in power generation from hard coal and renewable energies, and one of the largest private residential real estate companies in Germany. Our strengths are creativity, specialization, continuous self-renewal, and reliability. Evonik is active in over 100 countries around the world. In its fiscal year 2008, some 41,000 employees generated sales of approx. €15.9 billion and an operating profit (EBITDA) of approx. €2.2 billion.

Under the LITARION® brand, Evonik Litarion GmbH produces electrodes that make a significant contribution to enhancing the performance of lithium-ion batteries. Evonik has also developed a novel ceramic separator named SEPARION® to significantly boost both the efficiency and safety of large-scale lithium-ion cells. Li-Tec – a joint venture operated by Evonik Industries (50.1%) and Daimler AG (49.9%) – makes use of the key chemical cell components supplied by Evonik Litarion to produce large-scale lithium-ion battery cells for automotive and industrial applications at the partners´ joint production site in Kamenz, Saxony.