LG Chem to Invest 1.2 Trillion Won in Saemangeum for Precursor Factory Construction

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LG Chem is partnering with China’s Huayou Cobalt to build a precursor plant in the Saemangeum National Industrial Complex (hereinafter Saemangeum). This move aims to strengthen the battery materials supply chain.

LG Chem announced on the 17th that it will sign a memorandum of understanding (MOU) for the precursor plant investment with related organizations at the Best Western Hotel in Gunsan, Jeollabuk-do on the 19th. The agreement involves the Saemangeum Development Authority, investors LG Chem and Huayou Cobalt, and local governments and corporations including Jeollabuk-do, Gunsan City, and the Korea Rural Community Corporation.

LG Chem and Huayou Cobalt, which are promoting the establishment of a joint venture, will invest a total of 1.2 trillion KRW by 2028 to build a precursor plant in Section 6 of the Saemangeum Industrial Complex.

A view of Saemangeum National Industrial Complex, Gunsan-si, Jeonbuk [Photo by LG Chem]

They plan to start construction this year in phases, establishing a first phase mass production system of 50,000 tons by 2026. Subsequently, they will expand production facilities by an additional 50,000 tons in the second phase to produce 100,000 tons of precursor annually. The two companies will also install metal refining facilities at the Saemangeum plant to produce metal sulfate, a precursor material.

The Saemangeum Industrial Complex is adjacent to a port and has established logistics infrastructure. It is considered an advantageous location for battery material factories due to its large expandable site. The site covers 330,000 square meters (approximately 100,000 pyeong), equivalent to 46 soccer fields.

Precursor is a compound mixing nickel, cobalt, manganese, and other elements, serving as a key material used to make cathode active materials, the heart of batteries. The 100,000 tons of precursor can produce cathode materials sufficient for about one million electric vehicles (based on 75kWh capacity capable of 500 km driving range).

As the global battery materials supply chain rapidly changes, LG Chem will enable metal refining domestically, expand precursor production capacity, and significantly enhance the stability of raw material supply.

Kim Kwan-young, Governor of Jeollabuk-do, stated, “We will wholeheartedly support the stable settlement of companies and smooth business operations.” Kim Kyu-hyun, Commissioner of the Saemangeum Development Authority, said, “We will spare no support to ensure LG Chem firmly establishes itself as the world’s number one company representing K-batteries in Saemangeum, the center of Korea’s secondary battery industry.”

Shin Hak-cheol, Vice Chairman of LG Chem, said, “Based on the Saemangeum precursor plant, we will strengthen vertical integration of cathode materials and build a stable materials supply chain. We will proactively respond to the rapidly changing global market and leap forward as the world’s best comprehensive battery materials company.”

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