LG Chem's 'Dream Material' Carbon Nanotube Yeosu Plant Starts Operation... Secures No.1 Production Capacity in Korea

LG Chem employees are inspecting the completed Yeosu CNT Plant 2.

[Asia Economy Reporter Kim Hyewon] LG Chem is officially launching the operation of the largest carbon nanotube (CNT) factory in South Korea. This move aims to target the rapidly growing CNT market, centered on electric vehicle battery materials such as cathode materials.

On the 14th, LG Chem announced that the Yeosu CNT Plant 2 has completed a 1,200-ton expansion construction and has entered commercial operation. Combined with the existing 500 tons, LG Chem has secured a total production capacity of 1,700 tons.

CNT is a next-generation new material with electrical and thermal conductivity comparable to copper and diamond, and strength 100 times that of steel. With superior properties surpassing existing materials, its applications are broad, including batteries, semiconductors, automotive parts, and planar heating elements.

The newly completed LG Chem CNT Plant 2 applies a self-developed fluidized bed reactor, making it the largest single-line facility in the world. It features stable quality control through full process automation and process innovation, reducing power consumption by 30% compared to previous facilities.

The CNT produced at this plant is scheduled to be supplied as cathode conductive material to battery companies such as LG Energy Solution, which currently leads the global electric vehicle battery market, and plans to expand supply to various industrial sectors. Cathode conductive materials assist the flow of electricity and electrons and are used as additives throughout lithium-ion batteries. In particular, within cathode materials composed of active materials such as nickel, cobalt, and manganese, they increase lithium-ion conductivity, enhancing charge-discharge efficiency.

Using CNT as cathode conductive material achieves conductivity about 10% higher than conventional carbon black, allowing a reduction of conductive material usage by approximately 30%. Additionally, reducing conductive material enables more cathode material to be filled, significantly increasing battery capacity and lifespan.

Additional Expansion of Plant 3... Targeting the CNT Market Growing Over 40% Annually

LG Chem plans to continuously expand production capacity, including starting additional expansion of Plant 3 within the year, in response to the sustained growth of the CNT market.

In fact, the industry expects global CNT demand to explode from about 5,000 tons last year to 20,000 tons in 2024, growing at an average annual rate of over 40%. This is due to the rapid growth of the electric vehicle battery market and the continuous expansion of new areas where CNT can be applied.

LG Chem also plans to increase CNT sales in new application fields such as conductive compounds for semiconductor process trays and automotive electrocoating exterior materials, planar heating elements, semiconductor high-voltage cables, and high-strength concrete for construction.

For example, applying CNT to semiconductor process tray materials can withstand high temperatures and block dust, electromagnetic waves, and static electricity based on excellent thermal conductivity.

Maximizing Efficiency through Vertical Integration from Raw Materials to Products Based on Technology

LG Chem’s CNT business maximizes efficiency and produces competitive products through vertical integration from raw materials such as ethylene to production technologies and processes including proprietary catalysts and fluidized bed reactors, and finally to products.

In particular, for the core technology of catalysts, LG Chem uses cobalt (Co)-based catalysts developed through proprietary technology, reducing foreign matter content that could affect battery quality and achieving excellent quality. Typically, iron (Fe) catalysts commonly used in the industry have relatively higher metal and magnetic foreign matter content compared to cobalt, requiring separate post-processing for productization.

Since officially starting R&D for proprietary CNT technology development in 2011, LG Chem currently holds over 280 related patents.

Additionally, the product form was designed as compressed tablet-shaped pills to improve usability, inspired by customer pain points. Existing powder or pellet forms tend to scatter in the air or break during transport, causing inconvenience for customers.

LG Chem’s Petrochemical Business Division Head, Noh Gukrae, stated, "CNT is a business with great market expansion potential in various applications beyond battery materials. Based on expanded production capacity and excellent quality competitiveness, we will become a leading global company."

This content was produced with the assistance of AI translation services.