The Korean petrochemical industry has been stuck in a slump, making for a less-than-rosy first-quarter report card. However, LG Chem’s operating profit appears to be a bright spot amid the gloom. Although the company’s first-quarter operating profit is expected to decline 38.1% year-over-year to 634.6 billion won, it is projected to jump 231.7% quarter-over-quarter from 191.3 billion won. LG Chem’s success can be attributed in part to the high proportion of new businesses, such as battery materials, alongside its traditional petrochemical operations. (Image courtesy of Yonhap)
SEOUL, April 14 (Korea Bizwire) —LG Chem, a South Korean chemical company, and China’s Huayu Cobalt have announced plans to build a joint battery precursor plant in Saemangeum, South Korea. The goal of the partnership is to bolster the domestic supply chain for battery materials in Korea in anticipation of the implementation of the U.S. Inflation Reduction Act (IRA).
The precursor plant will manufacture raw materials essential to the production of cathode materials, which make up 65-70% of the cost of cathode materials. The two companies intend to invest approximately KRW 1.2tn ($1bn) to manufacture 50,000 tons of precursor annually, with construction expected to commence at the end of this year and completion slated for the end of 2028.
In the meantime, LG Chem will showcase environmentally friendly and high-value products at the ChinaPlas 2023 exhibition in Shenzhen, China. The company will present PBAT, a material that biodegrades in six months, PLA, a fully bio-based plastic, and recycled products in a 398-square-meter booth, the largest in Korea.
Visitors can also experience LG Chem On, a digital integrated purchasing platform that the company developed for the petrochemical industry. The exhibition will also highlight POE, a film material for solar panels, carbon nanotubes for batteries, and NBL, a material for medical gloves, which are strategic products with high added value in the future.
M. H. Lee (mhlee@koreabizwire.com)
