Lotte Chemical Enters Battery Material Business with 210 Billion KRW Investment Decision

[Asia Economy Reporter Hwang Yoon-joo] Lotte Chemical is entering the organic solvent business for electrolytes used in electric vehicle batteries. The company plans to expand its high-value-added materials business in response to the growing demand for electric vehicles.

Lotte Chemical announced on the 20th that it held a board meeting and decided to invest 210 billion KRW to construct production facilities for ethylene carbonate (EC) and dimethyl carbonate (DMC), organic solvents for electric vehicle battery electrolytes, within the Daesan plant, aiming for completion in the second half of 2023.

EC and DMC are representative organic solvents used in electrolytes, one of the four main components of lithium-ion batteries. They dissolve lithium salts that enable the movement of lithium ions (Li+) between the cathode and anode, facilitating smooth lithium ion transport. EC is produced using EO as a raw material, while DMC is manufactured using EC as a raw material.

Continuous growth in the battery industry is expected due to the recent increase in electric vehicle demand. Accordingly, Lotte Chemical is diversifying its entry into high-performance and battery material sectors based on its business portfolio and production capabilities.

Through this investment, Lotte Chemical plans to leverage its existing HPEO5 facilities to enter the organic solvent electrolyte business, which is expected to see high demand in the future. Organic solvents account for about 30% of the electrolyte cost and have high growth potential, but currently, all materials are imported. This investment aims to strengthen business competitiveness and contribute to the localization of materials.

Additionally, by using greenhouse gas (CO2) as a raw material for product manufacturing, the company expects to reduce carbon emissions and contribute to strengthening Lotte Group’s eco-friendly business portfolio. In February, Lotte Group’s Chemical BU introduced the eco-friendly business strategy initiative 'Green Promise 2030,' announcing goals to achieve 6 trillion KRW in eco-friendly business sales and carbon-neutral growth by 2030.

Going forward, Lotte Chemical plans to actively target domestic and international markets by developing differentiated products with higher cost competitiveness, stable supply capacity, and excellent quality compared to Chinese and Japanese companies, while also expanding profitability through optimizing its EO derivative business portfolio.

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