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LG Energy Solution Powers Up With Stake In China Battery Firm Greatpower

The South Korean battery maker has secured itself six years of nickel supplies as part of the $30 million move

LG has guaranteed itself six years of nickel supplies as part of the deal. Photo: AFP

 

South Korean battery maker LG Energy Solution will pay $30 million for a 4.8% stake in China’s Greatpower Nickel and Cobalt Materials Co, it announced on Friday.

The investment – which also sees the firm secure six years of nickel supply from the company – deepens LG’s presence in the world’s biggest electric vehicle (EV) market.

LG Energy Solution, a subsidiary of LG Chem that counts automakers Tesla and General Motors as customers, said in a statement it had secured a total of 20,000 tonnes of the battery ingredient nickel from Shanghai-based Greatpower over six years beginning in 2023. That would be enough for 370,000 EVs, it said.

 

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LG Chem already has a battery material production venture in China alongside Zhejiang Huayou Cobalt.

In its own statement, Greatpower said the tie-up would “ensure stable supply of key raw materials required for the production of electric vehicle batteries.”

LG Energy Solution and Hyundai Motor this week started construction on a $1.1 billion plant to make EV batteries in Indonesia.

 

  • Reuters and Sean O’Meara

 

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Sean OMeara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.

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