Specialty chemicals and performance materials manufacturer Cabot Corp. announced Monday that a definitive agreement was signed to purchase Tokai Carbon (Tianjin) Co. Ltd. and its carbon black site in Tianjin, China from Tokai Carbon Group. The firm will pay $9 million to acquire the asset, which is situated near Cabot’s existing carbon black and specialty compounds plant in the city.

“The acquisition of Tokai Carbon (Tianjin) is a natural extension for us as it aligns with our strategy to strengthen our global leadership positions while pursuing advantaged growth opportunities in high-growth, high-performance markets such as battery materials,” Cabot President and CEO Sean Koehane said in a statement. “With the acquisition, we will be better positioned to deliver solutions that meet the rapidly increasing demands for lithium-ion batteries and will do so by operating responsibly and investing in advanced environmental controls to reduce our impact.”

Conductive carbon black additives are used in boost the cycle life and range of lithium ion batteries, including those found in electric vehicles (EVs). Tokai Carbon Group’s plant has a capacity of 50,000 mt/yr of carbon black. Following the transfer of ownership, Cabot said it intends to upgrade the facility to manufacture battery grades of the product.

“We are very pleased to transfer the business to Cabot and wish the employees great success with the new owner,” said Hajime Nagasaka, president and CEO of Tokai Carbon Co. Ltd., in a statement.

The deal is expected to close in the second fiscal quarter of 2022.

Cabot launched a $90 million project to improve the efficiency and environmental profile of its Ville Platte, LA carbon black plant in July 2020, Powder & Bulk Solids reported. The company said it plans to create a cohesive system that will capture steam from the incineration process, remove impurities, and provide electricity to the facility.