LG Chem to Grow Battery Materials Business Sixfold to 30 Trillion Won by 2030

Vice Chairman Shin Hak-cheol Declares "Top Global Science Company"
Fostering Eco-friendly, Recycled, and Biodegradable Materials
Focusing Research on Innovative New Drugs, Cancer, and Metabolic Diseases

Shin Hak-cheol, Vice Chairman of LG Chem, announced plans to grow battery materials sales to 30 trillion KRW by 2030, aiming to leap forward as a "global top comprehensive battery materials company."

Along with battery materials, the company intends to increase the sales proportion of its three major growth engines?eco-friendly materials and innovative new drugs?by more than 50%, marking a major portfolio transformation from petrochemicals to a "top global science company."

Shin Hak-cheol, Vice Chairman of LG Chem, is delivering the keynote speech at a conference hosted by Bank of America at the Grand Hyatt Seoul on the 16th.

On the 16th, at the Bank of America (BofA) 'Korea & Global Electric Vehicle and Secondary Battery Conference' keynote speech held at the Grand Hyatt Seoul, Vice Chairman Shin said, "Despite operating under an emergency management system amid an unprecedented pandemic and geopolitical conflicts, we have proactively nurtured new growth engines based on global megatrends and sustainable strategies," adding, "You will be able to feel the fundamental shift of LG Chem’s core axis moving to the three new growth engine businesses: battery materials, eco-friendly materials, and innovative new drugs."

First, battery materials are planned to grow at an average annual rate of 26%, increasing sales from 4.7 trillion KRW in 2022 to 30 trillion KRW by 2030. The company will foster value-added material businesses including cathode materials, separators, and carbon nanotubes (CNT), and actively pursue research and development of new materials such as pure silicon anode materials and solid-state battery electrolytes.

The strategy is to secure global leadership in high-nickel cathode materials and continue leading the market. LG Chem plans to establish a four-corner production system in Korea, China, the U.S., and Europe, expanding production capacity from 120,000 tons in 2023 to 470,000 tons by 2028. The share of new global customers outside LG Energy Solution will also be increased to about 40%.

The company will expand its high-nickel cathode product lineup centered on pouch and cylindrical batteries and mass-produce ultra-high-nickel cathode materials with about 95% nickel content. It will also secure leading technologies such as expanded application of single-crystal cathode materials. To target the mass electric vehicle consumer market, LG Chem is considering expanding its business with various mid- to low-cost cathode product lines including high-voltage mid-nickel (Mid-Ni), lithium iron phosphate (LFP), and manganese-rich (Mn-Rich) materials.

In collaboration with Japan’s Toray, LG Chem will expand its separator market presence to Korea, Europe, and the U.S. The company plans to actively explore growth opportunities based on innovative material technologies such as pure silicon (Pure-Si) anode materials, solid-state electrolytes, aerogels, and battery flame-retardant materials.

LG Chem's Sales Plan for Three Major New Growth Engines by 2030

LG Chem will also strengthen its businesses in eco-friendly materials and innovative new drugs.

Sales related to recycling, biodegradable, and bio-renewable energy materials are expected to expand from 1.9 trillion KRW last year to 8 trillion KRW by 2030. To target the recycling plastics market, projected to reach 100 trillion KRW by 2028, the company has secured a diverse product portfolio based on mechanical and chemical recycling technology capabilities.

Additionally, LG Chem aims to become a pharmaceutical company with sales of 2 trillion KRW, holding five FDA-approved new drugs in the U.S. It plans to focus resources on oncology and metabolic disease areas and continuously commercialize follow-up new drugs. To strengthen competitiveness in the U.S., the world’s largest oncology market, LG Chem acquired AVEO, which holds the FDA-approved oncology drug FOTIVDA, and is considering accelerating oncology drug development and introducing promising new drug substances.

Furthermore, LG Chem plans to strengthen its global leadership in decarbonization and continue sustainable growth. It has established Korea’s first carbon integrated management system that enables real-time financial perspective profit and loss reviews and investment prioritization decision support. The company also built a carbon reduction collaboration model targeting partners and proactively manages not only direct and indirect emissions (Scope 1 & 2) but also other indirect emissions (Scope 3).

Vice Chairman Shin stated, "Over the past four years, through painstaking efforts, we have repeatedly innovated our management system by transforming our business portfolio, establishing business processes based on digital transformation (DX), and securing local capabilities in the four major global regions," adding, "We will complete the foundation for sustainable growth and accelerate the major transformation into a global science company with three core businesses: battery materials, eco-friendly materials, and innovative new drugs."

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