LG Chem started research on batteries in 1992, and established a technology center in Troy, Michigan, U.S. in 2001 for more advanced research. For a long time, LG Chem has worked with automotive companies and made notable achievements including the development of Safety Reinforced Separator (SRS™) and the world’s first mass production of cylindrical lithium-ion batteries. Now LG Chem focuses on research and development of battery materials.   During US Secretary of the Treasury Janet Yellen’s visit to Korea in July 2022, she met with CEO Shin Hak-Cheol to discuss battery material technology and strengthening battery supply chains. LG Energy Solution, a battery manufacturing subsidiary of LG Chem, operates a plant in Ohio, U.S., and is constructing manufacturing plants in Tennessee and Michigan, as well as in Ontario, Canada. Local demand for battery materials is steadily rising, and LG Chem is looking forward to stronger partnerships with leading companies in the US.

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Leading the field of battery recycling together
with the largest battery recycler in North America

In a bid to lead the field of battery recycling, LG Chem forged a partnership with LG Energy Solution and Li-Cycle, the largest battery recycler in North America. Established in 2016, Li-Cycle has excellent technology for recovering critical materials from recycled batteries. For ten years starting in 2023, Li-Cycle will be supplying 20,000 tons of recycled nickel for LG Chem and LG Energy Solution. The nickel will be extracted from scraps generated during manufacturing batteries as well as from discarded batteries. In recovering, Li-Cycle uses an eco-friendly wet method that prevents dust and minimizes discharge of toxic materials by fully reusing waste water. This environment-friendly approach strengthens their competitiveness in ESG management. With a supply of raw materials produced in an eco-friendly way, LG Chem and LG Energy Solution respond to increasingly more rigorous environmental regulations in the US and EU.

A stable supply of cathode materials
amid growing global market for EV batteries

  In July 2022, LG Chem joined hands with GM(General Motors), the largest automaker in the US, to make forays into a fast-growing market for electric vehicle(EV) batteries. LG Chem plans to supply over 950,000 tons of cathode materials to GM until 2030. These cathode materials will be used by LG Energy Solution and their joint venture, Ultium Cells. The amount is equivalent to batteries needed in 5 million high-performance EVs. As the market for EV batteries grows, GM has a growing need for a stable supply of cathode materials, and GM chose LG Chem as a partner for their excellent technology for high-nickel cathode materials. LG Chem will be supplying NCMA (nickel, cobalt, manganese, aluminum) cathode materials for next-generation EV batteries. The materials are made using LG Chem’s advanced technology, and ensure an excellent output. These contain more than 90% of nickel─which determines energy density─and use aluminum for greater stability. LG Chem implements a localization strategy in North America by 2025, and plans to maintain a partnership with GM by securing a stable production capacity.

LG Chem makes forays into global market for battery materials
by strengthening global value chain!

In discussions with Janet Yellen, LG Chem suggested cooperative supply chains for battery materials. LG Chem plans to actively develop battery materials as demand increases alongside the growing EV market, strengthening their business portfolio in order to become the world’s leading battery company by expanding to include cathode materials, battery separators, CNT, thermal adhesives, anode binders, and Battery Assembly Solutions (BAS). To this end, LG Chem plans to invest $45 billion (KRW 6 trillion) by 2025, of which  more than $11 billion will be invested between 2020 and 2025 including investments from subsidiary, LG Energy Solution, in order to localize a North American supply chain and capitalize on one of the world’s largest automotive markets. Additionally, LG Chem is building a cathode material plant in Tennessee, U.S., to strengthen a global value chain for batteries. Investments in the North American battery materials market are expected to accelerate as cooperation makes headway.

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Among LG Chem’s state-of-the-art materials, revenue from sales of cathode materials exceeded $745 million (KRW 1 trillion) in the second quarter of 2022, indicating strong growth potential. To further grow their sustainable battery business, LG Chem will spur their efforts of creating a virtuous cycle of resources, including battery recycling and the production of precursors and cathode materials made of recycled materials. With the goal of achieving net zero in 2050, LG Chem is employing strategies that cut carbon emissions throughout the supply chain.