[Today Newspaper Reporter Hong Ki-won]LG Chem will establish a joint venture with B&M, a cathode material subsidiary of Huayou Cobalt in China, in order to strengthen competitiveness in the battery material field. The joint venture plans to build a dedicated line for NCMA (nickel, cobalt, manganese, aluminum) cathode materials for next-generation electric vehicle batteries that LG Chem is fostering.
LG Chem announced on the 31st that it signed a contract to establish a joint venture with B&M, and said that about 500 billion won will be invested in the joint venture by 2025, including the initial investment. On the 30th, LG Chem and B&M held a ceremony to sign a joint venture contract for the cathode material business in Gumi at the LG Twin Tower in Yeouido, Seoul.
The joint venture will be established in such a way that B&M will invest a stake in the Gumi Cathode Materials Corporation, a subsidiary of LG Chem. LG Chem will own a 51% stake and B&M will hold a 49% stake. The CEO of the joint venture will be Kim Woo-seong, the CEO of the existing Gumi cathode material corporation.
The joint venture’s NCMA cathode material production capacity is about 60,000 tons per year, and partial mass production is planned to begin in the second half of 2024. This is the quantity that can make batteries for about 500,000 high-performance pure electric vehicles (EVs, capable of driving 500 km).
Huayou Cobalt, the parent company of B&M, guarantees a stable supply of nickel and cobalt essential for cathode material production to the joint venture, and also supplies precursors necessary for the operation of the Gumi joint venture through the Quzhou corporation in China, a joint venture with LG Chem. As a result, LG Chem has been able to stably secure the metal needed to produce cathode materials in a situation where raw material prices are intensifying.
LG Chem Vice Chairman Shin Hak-cheol said, “With this joint venture, we have consolidated our strong vertical system from core raw materials to cathode materials. . “We will work with LG Chem to contribute to the development of the global lithium battery industry by combining LG Chem’s technological and market competitiveness with Huayou’s strong value chain capabilities,” said Seolhwa Jin, president of Huayou Cobalt.