CJ and ADM Partner to Boost U.S. Lysine Production Amid Trade Shifts

CJ CheilJedang (097950) has teamed up with U.S. grain giant ADM to bolster lysine production in the Americas. The move comes amid tightening trade restrictions on Chinese lysine, which has driven up prices and increased the need for local production. Under the agreement, CJ’s U.S. subsidiary, CJ Bio America, will hold a 63% stake in the joint venture, while ADM will own 37%. CJ will contribute its lysine production facilities in Iowa and Brazil, along with its sales networks in the Americas, while ADM will bring its Illinois-based facility and grain procurement network to the partnership.

The joint venture is significant as it follows a rebound in lysine prices due to trade actions against Chinese exports. According to Feedinfo, U.S. lysine prices surged 38% from December 2025 to March 2026, while European prices rose 21% over the same period. The U.S. Department of Commerce and the International Trade Commission have previously targeted unfair trade practices involving Chinese lysine, further justifying the need for local production.

CJ will retain control of its lysine technology, licensing it only for the Americas while keeping global fermentation businesses outside the region. The partnership aims to secure a stable raw material supply, as lysine production relies heavily on grain-derived sugars. ADM’s extensive grain infrastructure will support this effort. The joint venture is pending regulatory approvals, with further details, including investment amounts, to be disclosed later.