LG Chem has announced a new strategy to become a top global battery materials company. CEO Shin Hak-cheol said at a recent battery conference in Seoul that LG Chem aims to grow its annual battery material sales sixfold, to KRW 30 trillion ($25.5 billion) by 2030.
The expansion of the company’s battery business is part of a larger transformation from a petrochemical-centric material supplier to a “top global science company.” In addition to battery materials, LG Chem will expand its footprints in sustainability and drugs.
“You will be able to see and feel LG Chem’s axis moving towards the next big three engines: battery materials, sustainability businesses and innovative new drugs,” said Mr. Shin.
LG Chem, already prominent in the cathode material market, plans to cultivate its business in battery materials such as separators and carbon nanotubes (CNTs), and will promote R&D efforts in new materials including pure silicon anode materials and solid-state electrolytes.
The company hopes to establish “a global quadrilateral production system” for cathodes, connecting Korea, China, the US and Europe. This will help LG Chem expand its annual production capacity from 120,000 metric tons in 2023 to 470,000 metric tons by 2028. LG Chem says 40% of its clients will be new companies other than subsidiary LG Energy Solution.
LG Chem will expand its high-nickel cathode product lineup for pouch-type and cylindrical batteries, mass-producing ultra-high-nickel cathodes with nickel content of 95% and extending the application of single-crystal cathode materials technology in the sector. The company is also exploring cost-efficient cathode materials, including high-voltage mid-nickel, lithium iron phosphate (LFP) and manganese-rich chemistries.
LG Chem aims to strengthen global partnerships to secure its metal supply chain. In China, North America, Australia and Korea, it is establishing joint ventures for precursors, signing lithium contracts, and making equity investments with companies including Huayou Cobalt, Piedmont Lithium and Korea Energy Management Cooperation (KEMCO).
Source: LG Chem