US Yellen Emphasizes 'Friendshoring' at Korea Battery Hub... "Must Prevent Resource Weaponization by China" (Comprehensive)

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On the morning of the 19th, Janet Yellen, U.S. Secretary of the Treasury, visited LG Science Park in Magok-dong, Gangseo-gu, Seoul, and greeted Shin Hak-cheol, Vice Chairman of LG Chem.
[Photo by Yonhap News]

[Asia Economy Reporter Jeong Dong-hoon] Janet Yellen, the U.S. Secretary of the Treasury, who is visiting South Korea, visited LG Chem's core battery research center and emphasized the establishment of supply chains between South Korea and the U.S. She also made strong remarks targeting China, which is showing moves to weaponize key battery materials such as lithium and nickel.

On the morning of the 19th, Secretary Yellen visited LG Science Park in Magok-dong, Gangseo-gu, Seoul, stating, "The U.S. cannot solve supply chain vulnerabilities alone," and emphasized, "Even if the U.S. increases domestic investment capacity, it cannot secure key components and products without the help of partners, and supply chains must be secured through cooperation with partners."

She added, "Your innovation efforts signify the vitality of the Korean economy," and said, "Your creativity and commitment to basic science are the driving forces behind achieving a productive economy in Korea." She also mentioned that U.S. investments in South Korea, including semiconductors and batteries, are continuously increasing, saying, "As these economic relations strengthen, the global economy becomes more resilient and healthier."

South Korea and Friendshoring... "Aiming to Prevent 'Unilateral China' from Dominant Position"

She particularly emphasized 'friendshoring' in cooperation with South Korea. Friendshoring refers to building supply chains among allied countries. Secretary Yellen said, "South Korea plays a major role in supply chains producing key components such as semiconductors and batteries," adding, "The two countries must cooperate to resolve supply chain bottlenecks and share the burdens."

She also mentioned the volatility in the energy market caused by Russia's invasion of Ukraine and raised the necessity of introducing a price cap on Russian crude oil.

Secretary Yellen further stressed, "We must focus on economic resilience, growth, and supply chain recovery," and "We need to introduce {$_... among partners and allies to achieve stronger economic growth."

Regarding friendshoring, she explained, "It means strengthening relationships and diversifying supply chains," adding, "Through this, we can protect households in South Korea and the U.S. from price inflation, manage geopolitical and economic risks, and ensure smooth product production." Secretary Yellen stated, "To further strengthen supply chains, we must solidify economic cooperation with key allies, including South Korea," and asserted, "We must focus more on core countries. The U.S. has no plans to retreat from the world."

Specifically about China, she said, "China is also making efforts to secure dominant power in the manufacturing environment of certain materials and substances, and is introducing unfair market orders to achieve this," emphasizing, "We must prevent dominant authority in supply chains from falling into the hands of specific forces or countries." She also mentioned, "We aim to prevent unilateral countries like China from securing dominant positions over certain products and materials," and "The U.S. and South Korea share a common goal of creating a free and open Indo-Pacific region."

On the morning of the 19th, Janet Yellen, U.S. Secretary of the Treasury, visited LG Science Park in Magok-dong, Gangseo-gu, Seoul, and shook hands with Shin Hak-cheol, Vice Chairman of LG Chem, after his speech.
[Photo by Yonhap News]

Batteries as Core to Supply Chains Following Semiconductors... "Let's Build Healthy Supply Chains through U.S. Investment"

LG Chem is the only Korean company Secretary Yellen visited during her stay. Amid the Russia-Ukraine war and U.S.-China trade conflicts, South Korea and the U.S. are accelerating their supply chain alliance. Cooperation in the semiconductor and battery sectors is particularly strengthening. LG Chem is advancing as a global comprehensive battery materials company, including cathode materials and separators. It has LG Energy Solution, which competes globally for the top position in the battery industry, as its subsidiary. Secretary Yellen's visit is analyzed as a strategic move to solidify the battery alliance between South Korea and the U.S.

Secretary Yellen said, "The supply chain crisis has raised consumer prices, causing pain for citizens in both South Korea and the U.S. To resolve this global economic crisis, cooperation in industries such as semiconductors and batteries to address supply chain issues is crucial."

Vice Chairman Shin Hak-cheol also said in his greeting, "Through research and development and battery plant establishment in the U.S., LG has been able to confirm the potential and future of the secondary battery industry," adding, "Currently, LG Chem is preparing to become the world's top comprehensive battery materials company. I believe that through cooperation between the U.S. and South Korea, the battery materials business and battery industry can expand and innovate."

On that day, Secretary Yellen reportedly asked Vice Chairman Shin about how long it takes to charge batteries. She also inquired about how far electric vehicle batteries can run on a single charge and how much they can be used if recycled.

LG Chem, together with its subsidiary LG Energy Solution, invested 60 billion KRW last December to acquire a 2.6% stake in Li-Cycle, the largest battery recycling company in North America, and signed a contract to supply nickel sulfate, a key battery material, for ten years. LG Energy Solution is also strengthening its strategy to capture the rapidly growing North American battery market. It is making large-scale investments, including establishing a battery joint venture plant in Canada with U.S. automaker Stellantis and building an additional battery-only plant in the U.S.

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