[Special Stock] LG Chem Rises on News of Saemangeum Precursor Plant Investment

LG Chem is showing strong gains in early trading following news that it will build a precursor joint factory in the Saemangeum National Industrial Complex together with China's Zhejiang Huayou Cobalt to strengthen the battery supply chain.

As of 9:30 AM on the 20th, LG Chem is trading at 797,000 KRW, up 0.89% (7,000 KRW) compared to the previous trading day.

According to industry sources, LG Chem and Huayou Cobalt signed a memorandum of understanding (MOU) for precursor factory investment with related organizations including the Saemangeum Development Authority, Jeonbuk Province, Gunsan City, and Korea Rural Community Corporation at the Best Western Hotel in Gunsan, Jeonbuk, the day before.

Under this agreement, the two companies will invest a total of 1.2 trillion KRW by 2028 to build a precursor factory on a 338,000㎡ (approximately 100,000 pyeong) site in Section 6 of the Saemangeum Industrial Complex. Construction will begin in December this year, with the first phase aiming to establish a mass production system of 50,000 tons by 2026, followed by a second phase to expand production facilities by another 50,000 tons, targeting an annual production capacity of 100,000 tons of precursor material.

The 100,000 tons of precursor material is enough to produce cathode materials required for about 1 million electric vehicles (based on a 75 kWh capacity capable of driving 500 km).

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