LG Energy Solution-Huayou Cobalt Establish Joint Venture for Battery Recycling in China

Factory in Nanjing, Jiangsu Province and Quzhou, Zhejiang Province
Recycled metals used in LG Energy Solution battery production
Construction to start by end of this year... Operation targeted by end of next year

LG Energy Solution announced on the 8th that it has established a joint venture (JV) for battery recycling with Huayou Cobalt, the No. 1 cobalt producer in China. This is the first Korea-China joint battery recycling company in China.

LG Energy Solution held a 'Battery Recycle Joint Venture Contract Signing Ceremony' at Huayou Cobalt's headquarters in Zhejiang Province, China, the day before. The ceremony was attended by Tian Xuehua, Chairman of Huayou Cobalt Group, and Kim Dongsoo, Executive Director and Head of Purchasing Center at LG Energy Solution, among others.

The new joint venture will extract key raw materials such as nickel, cobalt, and lithium from scrap waste generated during the battery production process and collected used batteries. Pre-processing plants for treating scrap and processing used batteries will be established in Nanjing City, Jiangsu Province, and Quzhou City, Zhejiang Province, respectively, along with post-processing plants for recycling metals.

Construction of the plants is scheduled to begin in earnest this year, with expected operation by the end of next year. The metals produced by the new joint venture will subsequently go through the cathode material production process and ultimately be supplied to LG Energy Solution's battery production plant in Nanjing (南京).

On the 7th, at the headquarters of Huayou Cobalt in Zhejiang Province, China, Han Dong-hoon, Executive Director in charge of cathode material purchasing at LG Energy Solution (right), and Bao Wei, CEO of Huayou Recycle, held a signing ceremony for the establishment of a battery recycling joint venture (JV) between the two companies and took a commemorative photo. (From the back row, right) Heo Seong-hwa, Head of Legal Team China at LG Energy Solution; Ma Gi-sik, Environmental Safety Officer at Nanjing Corporation; Kwon Young-seop, M&A Officer; Song Gyo-young, China IPO Advisor; Kim Dong-su, Executive Director and Head of Purchasing Center; Chen Xuehua, Managing Director of Huayou Cobalt Group; Chen Yajong, CEO of Huayou Cathode Material; Xu Wei, CEO of Huayou Precursor; Wang Jun, CFO of Huayou Cobalt Group; Fang Junyu, CEO of Huayou Resource Recycling.

By leveraging Huayou Cobalt's recycling technology, LG Energy Solution can stably secure key raw materials through resource circulation, thereby further enhancing its customer value capabilities in the recycling sector. Huayou Cobalt Group, in turn, can achieve economies of scale and expand its business by securing stable recycled material volumes and sales channels through cooperation with LG Energy Solution, which has global mass production and quality competitiveness.

The two companies also agreed to further strengthen their strategic partnership and expand cooperation in the battery recycling business sector going forward.

LG Energy Solution stated, "To build a sustainable and stable battery supply chain, it is essential to establish a resource circulation system that manages the entire battery lifecycle," adding, "Based on cooperation with Huayou Cobalt, we have been able to further enhance our customer value capabilities in the recycling sector using sustainable resources."

LG Energy Solution is striving to establish a resource circulation loop by exploring new business opportunities in the battery recycling and reuse market and securing partnerships with competitive companies. By 2027, it plans to strengthen ESG management by collaborating with leading companies across the entire value chain at major production bases in the U.S., Poland, and Asia.

LG Energy Solution-Huayou Cobalt Recycle Joint Production Corporation Supply Chain
[Image Source=LG Energy Solution]

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