Cosmo Chemical said on Friday that its board approved its merger with Cosmo Ecochem on thursday.
Cosmo Ecochem is wholly owned by Cosmo Chemical. No new shares will be issued for the merger.
A Cosmo spokesperson said the merger was being done to vertically integrate the group’s battery material businesses (cobalt, precursors and cathode).
They also said being able to supply battery materials was more important than ever in the current global environment. Cosmo has an advantage over rivals in not relying on China for some of the materials, they added.