LG Chem's Battery Material Plant in China Operates Solely on Renewable Energy

Storage Capacity Maximizes Renewable Energy Generation at 50GWh Supply
Reduces Annual Carbon Emissions Equivalent to 14,000 Internal Combustion Vehicles
Achieves RE100 from Wuxi Plant to Quzhou Plant

[Asia Economy Reporter Choi Dae-yeol] LG Chem announced on the 10th that its battery materials plant in China has achieved RE100. RE100 is an international campaign in which factories source all the electricity they use from renewable energy to reduce carbon emissions.

According to the company, the precursor plant in Quzhou, Zhejiang Province, China, signed a third-party Power Purchase Agreement (PPA) to procure 50 GWh of renewable energy annually from Zhejiang Zheneng Power, the largest power producer in the region. As a result, 100% of the electricity used by the plant has been switched to renewable energy. This will reduce carbon emissions by approximately 35,000 tons, equivalent to the amount emitted by 14,000 internal combustion engine vehicles in one year.

The PPA method for procuring renewable energy involves a contract among renewable energy producers, intermediaries, and buyers to supply renewable energy at a fixed price. It is highly versatile as it is recognized globally as a carbon reduction activity. LG Chem explained, "We secured both economic feasibility and sustainability by procuring renewable energy at a lower cost than general industrial electricity and receiving recognition for the resulting carbon reduction."

Previously, the company’s Wuxi cathode material plant became the first Korean company in China to implement a third-party PPA at the end of last year. With the Quzhou plant now achieving RE100, all battery material processes in China can operate solely on renewable energy. In Korea, the Cheongju cathode material plant joined the Green Premium system, switching 30% of its electricity usage to renewable energy. Achieving RE100 or reducing carbon emissions is also a demand from LG Chem’s main customers, such as electric vehicle and battery companies.

The renewable energy secured by the company domestically and internationally amounts to 337.2 GWh, enough to power 80,000 four-person households for one year. Shin Hak-cheol, Vice Chairman of LG Chem, stated, "As an ESG (Environmental, Social, and Governance) leading company, we will actively seek ways to transition to renewable energy both domestically and internationally and accelerate the RE100 transition of our global business sites."

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