Central Glass Co., Ltd.
4044.TMEDIUMScore: 30.5Battery Materials / LiPF6 Electrolyte Salt · Weight: 2%· Data as of 2026-06-03
Investment Thesis
Only meaningful Japanese LiPF6 (lithium hexafluorophosphate) producer — the key electrolyte salt in all Li-ion batteries including Honda's UC3 LFP and MPP 2170-format cells. Central Glass invented the world's first liquid-form LiPF6 production process and is one of <5 global producers outside China (China = 95% of global LiPF6 capacity). Confirmed: 5-year European battery gigafactory supply agreement (6,000+ tonnes/year, signed 2023) — secured ex-China LiPF6 supply floor. Also makes NF3 (semiconductor etching gas) adding dual exposure to semis. CYCLICAL TROUGH BUY: PBR 0.76x below book value, yield 5.45%, PE 17.7x. Operating margins compressed by Chinese LiPF6 price war; structural supply chain position is intact. As Honda Vietnam ramps LFP motorcycle batteries (UC3) locally in 2026 and LG Energy Solution scales MPP supply for Hanoi swap stations (1,000 stations by 2027), Japanese-origin LiPF6 demand grows. 5yr earnings CAGR 23.3%; forecast 26.2% going forward.
Risk
1) Chinese LiPF6 overcapacity structural not cyclical: if China producers never normalize pricing, Central Glass margins permanently compressed (operating margin ~3.2% vs historical 6-9%). 2) Solid-state batteries in 2028+ skip liquid LiPF6 electrolyte entirely — long-term technology substitution risk. 3) NI +47% FY2026 may include non-operating items (asset sales, investment gains) masking weak operating performance — verify before adding position. 4) Glass segment headwinds (automotive glass demand soft), cross-subsidising chemicals.
Monitoring Trigger
Add if: LiPF6 spot prices show 3+ months of recovery above ¥3,000/kg (Chinese oversupply absorption). Trim if: FY2026 full earnings release confirms >50% of NI was non-recurring. Exit if: solid-state battery commercialisation timeline moves to before 2030 (technology substitution imminent).
Key Dates
Key Metrics
Business Segments
| Segment | Revenue | Share | Description |
|---|---|---|---|
| Chemicals (incl. LiPF6 + fluorine chemicals) | est. >50% of OP | ~50% | LiPF6 battery electrolyte salt, HF (hydrogen fluoride), NF3 (semiconductor gas), fine chemicals. European gigafactory 6,000t/yr contract. |
| Glass Products | ~¥72B est | ~50% | Architectural glass, automotive glass, electronic materials glass. Headwinds from soft automotive demand. |
Supply Chain Evidence
| Evidence | Customer | Product | Detail |
|---|---|---|---|
| confirmed | European battery gigafactory (unnamed) | LiPF6 electrolyte salt (6,000+ tonnes/year) | 5-year supply agreement signed 2023. Central Glass supplies high-purity LiPF6 to a European battery gigafactory operator for EV battery production. Represents major ex-China LiPF6 anchor contract. |
| probable | LG Energy Solution (Honda MPP supplier) | LiPF6 for 2170-format cylindrical cells | LG Energy Solution supplies 2170 cylindrical cells for Honda's Mobile Power Pack e: batteries (Hanoi swap network, India e:Swap). LG's cells require LiPF6. Central Glass is the prime Japanese-origin LiPF6 source for Korean battery makers seeking supply chain diversification. |
| probable | Honda (UC3 LFP battery pack) | LiPF6 for fixed LFP battery electrolyte | Honda's UC3 uses Honda's first fixed LFP (lithium iron phosphate) battery. All LFP cells use LiPF6 as electrolyte salt. Honda's Vietnamese local production ramp in 2026 requires LFP cell supply — Central Glass is the logical Japanese LiPF6 source. |