LG Chem’s factory in Cheongju, North Chungcheong Province. (image: LG Chem)
SEOUL, May 16 (Korea Bizwire) — LG Chem Ltd., South Korea’s leading car battery maker, said Sunday it will invest 40 billion won (US$35 million) in a Chinese copper foil company for a stable supply of the core battery material.
LG Chem will make the investment in a stake of Jiujiang DeFu Technology, China’s third-largest copper foil maker, which has an annual output capacity of 49,000 tons of the material, the company said in a statement.
LG Chem has signed a memorandum of understanding with Jiujiang DeFu for a long-term partnership in the copper foil business, the statement said.
The Chinese firm plans to expand annual production to 78,000 tons by 2022 to meet rising demand for copper foil essential to manufacture car batteries, it said.
Global demand for copper foil is expected to grow 25 percent annually to 620,000 tons in 2025 from 260,000 tons this year, according to Hana Financial Investment Co.
(Yonhap)
