Dow Announces Approval of Joint Venture with Ube for Developing Electrolytes for Lithium-Ion Batteries

Joint Venture Also Names Leadership Team

MIDLAND, Mich.--(BUSINESS WIRE)--The Dow Chemical Company (NYSE:DOW) today announced that its 50-50 joint venture with Ube Industries, Ltd., Advanced Electrolyte Technologies LLC, has secured all necessary regulatory approvals. The joint venture company will manufacture formulated electrolytes for lithium-ion battery cell manufacturers in the energy storage market.

“This joint venture is an opportunity to bring together Ube’s electrolyte technology with Dow’s global supply network and materials science expertise to enhance the performance of lithium-ion batteries.”

The formation of Advanced Electrolyte Technologies (AET) was first announced in July. AET plans on constructing a manufacturing facility with the capacity of producing 5,000 tons of electrolytes per year at Dow’s Michigan Operations in Midland, Michigan. Production startup for the new facility is expected in late 2012. AET also has future plans to construct manufacturing facilities in China and Europe.

In addition, AET has named its executive leadership team. Toshimitsu Takahashi, president and CEO of Ube America, will hold the title of CEO. Koichi Ichinose, commercial director at Dow Automotive Systems, will serve as Chief Operating Officer, while Janet Holmes, global finance manager at Dow Automotive Systems, will be the Chief Financial Officer. Junji Tabuchi, deputy general manager of Ube, will serve as Secretary of the joint venture.

“We are excited to develop this partnership with Ube and add formulated electrolyte technology to enhance Dow’s portfolio of lithium-ion battery components,” said David Klanecky, senior business director, Dow Energy Materials. “This joint venture is an opportunity to bring together Ube’s electrolyte technology with Dow’s global supply network and materials science expertise to enhance the performance of lithium-ion batteries.”

Dow Energy Materials, a global business unit of The Dow Chemical Company, offers coated anodes and coated cathodes, two of the critical components for battery cells. The joint venture complements the growth strategy of Dow’s Energy Materials business by adding formulated electrolytes to its integrated product portfolio for lithium-ion batteries.

About Dow Energy Materials

Dow established Dow Energy Materials (DEM) in 2010 with the focus on the development of next-generation battery materials. Dow’s integrated portfolio offering (cathode, anode, electrolyte), innovation engine and market channel access provides the elements of success to ensure these new materials will be adopted broadly across the energy storage industry. For more information visit www.dowenergymaterials.com.

About Dow

Dow (NYSE:DOW) combines the power of science and technology with the "Human Element" to passionately innovate what is essential to human progress. The Company connects chemistry and innovation with the principles of sustainability to help address many of the world's most challenging problems such as the need for clean water, renewable energy generation and conservation, and increasing agricultural productivity. Dow's diversified industry-leading portfolio of specialty chemical, advanced materials, agrosciences and plastics businesses delivers a broad range of technology-based products and solutions to customers in approximately 160 countries and in high growth sectors such as electronics, water, energy, coatings and agriculture. In 2010, Dow had annual sales of $53.7 billion and employed approximately 50,000 people worldwide. The Company's more than 5,000 products are manufactured at 188 sites in 35 countries across the globe. References to "Dow" or the "Company" mean The Dow Chemical Company and its consolidated subsidiaries unless otherwise expressly noted. More information about Dow can be found at www.dow.com.

About Ube

Ube is one of leading chemical companies in Japan, which was established in 1987. Many basic chemicals and materials which Ube manufactures are widely used in various markets such as the automobile industry and consumer electronics market. Specialty chemicals such as independently developed polyimide, functional electrolyte and separator for lithium ion batteries are used globally by many industries and products including PCs and mobile phones. More information about Ube can be found at www.ube.co.jp.