LG Chem Chief Executive Officer Hak Cheol Shin Discusses Cooperation in Battery Materials Supply Chain with US Secretary of the Treasury Janet Yellen
- Minister Yellen only visited LG Chem among Korean corporations to check battery materials technologies and sustainability strategies
■ Minister Yellen examines next-generation battery materials of LG Chem and discusses inter-business cooperation between the two countries
□ Listened to explanations about major battery materials such as next-generation cathodes, separators, etc. and visited sustainability gallery
□ Minister Yellen says this was a valuable opportunity for seeing first-hand the battery material technology innovations of LG Chem
■ LG Chem positively reviews investments in North America as well to respond to the demand of global clients
□ Actively reviewing to construct new North American plant to localize supply chain of cathodes, which are key materials for EV batteries
□ Constructing a resource circulating loop for recycling waste batteries, etc. to lead the eco-friendly battery materials business
■ Chief Executive Officer Hak Cheol Shin,
“The US is where R&D for LG Chem’s EV batteries were conducted in earnest and is where close cooperative relationships with major automobile manufacturers were built over a long period of time”
“We will strengthen cooperative relations with major American companies in the battery materials sector as well, while unveiling new innovations to grow as the world’s best comprehensive battery materials company”
LG Chem Chief Executive Officer Hak Cheol Shin met with US Secretary of the Treasury Janet Yellen to discuss cooperation plans to reinforce the battery materials supply chain.
LG Chem announced on the 19th that the first schedule during Minister Yellen’s visit to Korea was a trip to the LG Chem Magok R&D Campus in Gangseo-gu, Seoul. Minister Yellen, who is touring the India and Pacific regions, visited LG Chem as her only visit to a Korean business. LG Chem’s future battery materials research facilities such as for next-generation cathodes and separators are gathered at LG Science Park Magok R&D Campus.
At this visit that lasted for over an hour, LG Chem Chief Executive Officer Hak Cheol Shin and Minister Yellen looked around the exhibit hall containing LG Chem’s battery materials technologies and sustainable strategies, while discussing cooperation plans to construct a materials supply chain.
Minister Yellen commented, “This was a valuable opportunity for seeing first-hand how LG Chem is making innovations in the battery materials sector,” and asked for continuous cooperation in the private sector by stating, “Thanks to the efforts of companies in Korea and the US like you, our two countries have grown into strong economic partners.”
LG Chem is focusing on fostering the battery materials sector in which demand is growing rapidly together with the growth of the EV market. For this, the Company is strengthening the business portfolio including cathodes and separators, CNT (carbon nano tube), thermal adhesives, anode binders, BAS (batter assembly solution), etc. and is looking to make a bold investment of 6 trillion KRW by 2025 with the goal of becoming the ‘world’s greatest comprehensive battery materials company.’
In particular, it is expected that investments (including the subsidiary LG Energy Solution) for localizing the battery supply chain in North America, which is one of the biggest automobile markets in the world, will exceed 11 billion USD from 2020 to 2025, and construction of a new cathode plant is also being reviewed positively. It is also expected that once supply chain cooperation accelerates through discussions with Minister Yellen, LG Chem’s investments in battery materials in North America will also be hastened.
Currently, LG Chem’s battery manufacturing subsidiary LG Energy Solution is also expanding its production facilities through joint ventures in Ohio, Tennessee and Michigan in the United States, and in Ontario, Canada, and there is continuously growing local demand for battery materials.
LG Chem is also spurring the construction of a resource circulation (closed-loop) system such as production of precursors and cathode materials using recycled materials in order to carry out sustainable battery materials businesses. In the US, LG Chem invested in shares for Li-Cycle, North America’s largest battery recycling company, and will receive 20,000 tons of recycled nickel for 10 years from 2023.
*Enough to manufacture 300,000 batteries for high-performance EVs (80kWh)
In Korea, a joint venture for collecting and using recycled metals for production of precursors was established, and mass production is scheduled to begin in 2024. Furthermore, LG Chem plans to realize its decarbonization strategy throughout its supply chain based on efforts such as converting to 100% renewable energy with the goal of achieving 2050 Net Zero, responsible operation of resource procurement policies, and technological development on converting carbon dioxide.
Chief Executive Officer Hak Cheol Shin stated, “The US, which is one of the world’s largest automobile markets, is where R&D for LG Chem’s EV batteries were conducted in earnest and is where close cooperative relationships with major automobile manufacturers were built over a long period of time,”
He further added, “We will strengthen cooperative relations with major American companies in the battery materials sector as well, while unveiling new innovations to grow as the world’s best comprehensive battery materials company”