LG Chem, Huayou in Korea battery precursors joint venture

LG Chem, Huayou in Korea battery precursors joint venture

LG Chem, Huayou in Korea battery precursors joint venture 850 546 Energy Storage Journal

April 21, 2023: LG Chem and China’s Huayou Cobalt are to invest KRW1.2 trillion ($909 million) in a joint venture to build a battery precursor plant in South Korea.

LG Chem announced on April 17 that it expects to start construction of the facility in Saemangeum later this year.

The battery maker said the facility will also be able to produce metal sulfates, giving it a domestic metals refining capacity to ease raw material supply chain concerns.

The deal comes just days after South Korea’s government announced a multibillion dollar package of support for its battery sector in the face of lucrative US incentives for the battery industry stateside.

LG Chem and Huayou have signed a memorandum of understanding for the joint venture with other investment partners including the Saemangeum Development and Investment Agency.

The facility will have an annual production capacity of 50,000 tonnes by 2026, following the first phase of development.

Production capacity will later be doubled.

LG Chem said about 100,000 tonnes of precursors is enough to annually produce cathodes for more than one million EVs with 75kWh batteries providing a driving range of 500km.

Energy Storage Journal reported on April 6 that LG Chem’s spun-off battery business, LG Energy Solution, planned to shore up its battery materials supply chain by producing lithium hydroxide in Morocco in partnership with China’s Sichuan Yahua Industrial Group.