LG Chem invests another 2.9 billion yuan to produce cathode materials for power batteries
Recently, South Korean battery manufacturer LG Chem announced that the company has agreed to invest 500 billion won (approximately 2.9 billion yuan) to build a new plant in South Korea to be responsible for the production of cathode materials for lithium-ion batteries. LG Chem plans to hold a groundbreaking ceremony for the plant in 2020. Company executives revealed that the plant will achieve mass production of battery cathode materials by the end of 2022. LG Chem executives added that the new plant will provide 1,000 jobs in South Korea. Currently, the company operates two other battery cathode material plants in South Korea. It is reported that the cathode material of lithium-ion batteries is made of metal materials such as lithium, nickel, cobalt, and manganese, while the anode usually uses graphite materials. JeongHo-young, president of LG Chem, said at a recent telephone financial report conference: “LG Chem aims to increase the independent production capacity of cathode materials to 35%, while the current proportion only accounts for 20%.” LG Chem is a world leader One of the manufacturers of power lithium-ion batteries, its customers include famous automobile manufacturers such as General Motors and Volkswagen. In order to meet the regulatory requirements of the global transportation market, major automakers are investing hundreds of millions of dollars in new energy projects. The radical electric vehicle boom also provides a broad market opportunity for LG Chem. As far as the Chinese market is concerned, LG Chem also has a corresponding layout. In June of this year, LG Chem and Geely Automobile signed a joint venture agreement. The two parties will form a joint venture company to produce and sell electric vehicle batteries. In addition, LG Chem plans to invest another 1.2 trillion won (approximately 7.26 billion yuan) to expand its production line in Nanjing by 2020 to cope with the increasing demand for cylindrical batteries from the global market.