"Growing Eco-friendly and Battery Materials"... LG Chem to Invest 10 Trillion Won by 2025

Vice Chairman Shin Hak-cheol of LG Chem Online Meeting

Shin Hak-cheol, Vice Chairman of LG Chem. Photo by LG Chem

[Asia Economy Reporter Choi Dae-yeol] LG Chem has decided to invest 10 trillion won by 2025 to grow its eco-friendly materials and secondary battery materials businesses, which it regards as new growth engines. The goal is to transform its business portfolio into one based on ESG (Environmental, Social, and Governance). To this end, the company plans to actively pursue facility expansion, research and development (R&D) enhancement, as well as mergers and acquisitions (M&A), joint ventures (JV), and strategic investments in external companies. In particular, LG Chem aims to focus investment on battery-centered battery materials business to transform into the world's largest comprehensive battery materials company.

Shin Hak-cheol, Vice Chairman of LG Chem, said at an online briefing held on the 14th, "The standard for gauging competitiveness in the market now must be based on 'sustainability' alongside sales and operating profit," adding, "We will reflect this in all business processes, strategies, and investments to innovate our business portfolio based on ESG and pursue sustainable growth."

The company will invest 6 trillion won solely in the battery materials business. While aiming to be a global leader in the cathode materials business, it will also cover various materials such as separators, anode binders, thermal adhesives, and carbon nanotubes (CNT). In December, it will begin construction of a cathode materials plant in Gumi with an annual capacity of 60,000 tons, and by 2026, production is expected to increase about sevenfold to 260,000 tons. For separators, LG Chem is considering M&A or joint ventures and plans to build overseas plants soon. Additionally, R&D will be strengthened to improve battery material performance and reduce production costs.

For the eco-friendly materials business, 3 trillion won will be spent. Construction of a biodegradable polymer PBAT plant will begin within the year, and the bio-plastics business will be expanded through joint ventures with domestic and foreign raw material companies. To promote a circular economy for waste plastics, mechanical and chemical recycling capabilities will be enhanced, and the company will newly enter the renewable energy materials sector, including solar and wind power. Furthermore, LG Chem plans to invest 1 trillion won to develop more than two innovative new drugs by 2030 and enter the U.S. and European markets.

Vice Chairman Shin stated, "We are reviewing more than 30 projects involving M&A, JVs, and strategic investments across all business areas, including battery materials."

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