LG Group Chairman Koo Kwang-mo is seen in this photo provided by the group during his visit to LG Chem’s Cheongju factory on April 17, 2023.
SEOUL, April 18 (Korea Bizwire) — LG Group Chairman Koo Kwang-mo stressed the importance of keeping a leading position in the production of a key secondary battery material, as the intensifying global race to develop electric vehicles (EV) has sharply driven demand, the group said Tuesday.
“As cathodes are a key material in the secondary battery business and a future growth engine, it is critical to maintain a competitive edge,” Koo said during his visit Monday to a battery plant of LG Chem Ltd., the country’s leading chemical producer, in Cheongju, 112 kilometers south of Seoul.
The visit came ahead of Koo’s planned trip to the United States at the end of the month to inspect the supply chains and production of secondary batteries.
Cathodes are a key battery component consisting of nickel, cobalt, manganese and aluminum.
The quality and content of these minerals in lithium-ion battery cells and the manufacturing technology determine the capacity and life of an EV. They account for about 40 percent of a battery’s production cost.
LG Chem, a subsidiary of LG Group, is currently building a third cathode manufacturing plant in Gumi, 192 kilometers southeast of Seoul, to pump up production.
It currently has two domestic cathode materials plants, in Cheongju and Iksan, North Jeolla Province, and one in Wuxi, China.
The three plants have a combined annual output capacity of 120,000 tons of cathode materials. The Cheongju campus is responsible for more than 70,000 tons.
LG Chem aims to boost its sales in the battery materials segment fourfold to 20 trillion won (US$15.1 billion) by 2027 from 5 trillion won in 2022.
(Yonhap)
