LG Chem considers transition to joint venture between Chinese companies and battery anode plants

[Infostock Daily= Reporter Park Sang-In] LG Chem will convert its secondary battery (battery) anode material plant, which is built in Gumi City, Gyeongbuk, from a single investment to a joint venture.

According to industry sources on the 1st, LG Chem is considering joint ventures (JV) related to the Gumi Podemic Factory due to uncertainties and financial burdens caused by Corona 19. The target is a Chinese battery anode material company.

LG Chem decided to build a anode material factory in Gumi in July, and it plans to invest 500 billion won by 2024 as part of its Gumi-type job project. When the plant is completed, it has production capacity of 60,000 tons per year.

LG Chem explained, "There is no fixed issue yet and we are reviewing it."

The decision to invest in a joint venture with a Chinese company will further strengthen the relationship between LG Chem and China. LG Chem operates a factory in the Singang Economic Development Zone in Nanjing, China. In January of last year, it decided to expand the battery and invest 600 billion won in the battery factory and small battery factory.

In China, CATL and BYD have battery manufacturers, which have grown into the top 10 companies in the world thanks to government support. CATL is the No. 1 compete for first prize with LG Chem and Panasonic.

Meanwhile, LG Chem is growing rapidly in the first quarter, surpassing Panasonic and CATL in the electric vehicle battery market and becoming the world's No. 1 market share (SNE Research Aggregation).

Reporter Park Sang-In si2020@infostock.co.kr