South Korea’s LG Chem said it would engage in a joint venture to make electric vehicle (EV) batteries with China’s Tianjin B&M Science and Technology (B&M), which specialises in cathode materials.
B&M’s capital investment in LG Chem’s Gumi EV batteries cathode production plant will result in a 49% stake in the JV with the remaining 51% to be held by LG Chem.
Both partners said they would commit a total of 500 billion won ($403 million) towards the initiative between now and 2025.
The EV batteries JV would be led by Kim Woo-sung, current president of LG Chem’s Gumi site, the South Korean company said.
Vertical Integration System
“The establishment of the joint venture further cements our vertical integration system with key raw materials to produce affordable, high quality cathode materials,” Shin Hak-cheol, the chief executive of LG Chem, said.
He said the JV would focus on manufacturing NCMA (nickel, cobalt, manganese, aluminium) cathode materials for next-generation EV batteries.
“We will continue to strengthen our efforts to supply best-in-class EV batteries materials to our customers,” he added.
LG Chem plans to begin initial mass production at Gumi in the second half of 2024. The annual production capacity of 60,000 tonnes will be enough to power about 500,000 high-performance EVs, each with a driving range of 500 kilometres.
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