LG Anode Material Factory for 500,000 Electric Vehicles Breaks Ground in Gumi

500 Billion KRW Investment by 2025
Construction of the World's Largest Single-Site Cathode Material Plant

President Moon Jae-in is seen conversing with Shin Hak-cheol, Vice Chairman of LG Chem, and others after performing the groundbreaking ceremony by placing an acrylic container filled with cathode materials into the touch button table groove at the groundbreaking ceremony of the Gumi-type job LG BCM (Battery Core Material) factory held on the morning of the 11th at GumiCO in Gumi-si, Gyeongbuk. From left: Kim Woo-sung, CEO of LG BCM; Lee Cheol-woo, Governor of Gyeongbuk Province; President Moon Jae-in; Vice Chairman Shin Hak-cheol; Jang Se-yong, Mayor of Gumi.

[Asia Economy Reporter Choi Dae-yeol] A cathode material factory, considered a key component of electric vehicle batteries, will be established in Gumi. It will be the world's largest single factory by production capacity, equipped to supply batteries for 500,000 electric vehicles. The Gwangju Global Motors, the first case of the Gwangju-type job model that produces finished cars as part of a win-win regional job project created by local governments and companies, is widely known.

On the 11th, LG Chem announced that it held a groundbreaking ceremony for the Gumi cathode material factory, which applies the Gumi-type job model, at the Gumi Convention Center. LG Chem's subsidiary LG BCM will build the factory, and local governments and the government will provide land and tax benefits. There will be 187 direct hires, and including partner companies, thousands of jobs will be created. Attendees included President Moon Jae-in, Deputy Prime Minister for Economy Hong Nam-ki, Minister of Trade, Industry and Energy Moon Seung-wook, Minister of Employment and Labor Ahn Kyung-duk, Minister of SMEs and Startups Kwon Chil-seung, Governor of Gyeongbuk Lee Cheol-woo, Mayor of Gumi Jang Se-yong, National Assembly members Lee Hak-young and Koo Ja-geun, and LG Chem Vice Chairman Shin Hak-cheol. About ten Gumi citizens watched the event via online live broadcast.

Cathode material is a core material that determines key battery performance such as capacity and lifespan. It accounts for about 40% of the battery production cost, making it very important. The company plans to invest 500 billion KRW by 2025 to establish facilities on a 60,000㎡ site within the Gumi National Industrial Complex 5.

On the morning of the 11th, at GumiCO in Gumi-si, Gyeongbuk, Kim Woo-sung, CEO of LG BCM, is giving a progress report at the groundbreaking ceremony of the Gumi-type job LG BCM (Battery Core Material) factory.

Once this facility is completed and mass production is established, it is expected to be the world's largest by production capacity. It will be capable of producing batteries to supply about 500,000 pure electric vehicles (with a 500km driving range). It will be used as a dedicated line for NCMA (Nickel-Cobalt-Manganese-Aluminum) cathode materials, which LG Chem is developing as its next-generation battery. LG Chem explained that NCMA, which concentrates the company's material technology, increases nickel content to about 90%, providing excellent stability and output.

In preparation for the expansion of the battery market, LG Chem plans to increase cathode material production capacity from the current 80,000 tons to 260,000 tons by 2026, more than tripling it. The company is developing technology that does not use cobalt, which has volatile prices, and single-crystal cathode materials for all-solid-state batteries, considered next-generation batteries. According to industry sources, global demand for cathode materials is expected to increase by more than 20% annually, from 990,000 tons last year to 6.05 million tons by 2030.

The company plans to strengthen cooperation with local companies and expand employment and professional workforce training to achieve mutual growth with Gumi City, where the factory is located. In his congratulatory speech, President Moon Jae-in said, "Through the Gumi-type job model, South Korea will leap forward as a battery powerhouse," and added, "The groundbreaking of the Gumi-type job factory is an example of how local labor, management, government, and civic groups can coexist and respond amid the global supply chain crisis."

LG Chem Vice Chairman Shin Hak-cheol said, "By investing world-class technology and facilities in the Gumi factory, we will be able to respond to the rapidly growing global demand for electric vehicle battery materials," and added, "We will strengthen its role as a core base and nurture it as a differentiated business for sustainable growth."

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