Posted on 18 Apr 2023
South Korean giant LG Chemical and Chinese new energy battery material developer Huayou Cobalt will soon sign an investment agreement on precursor production in South Korea, Kallanish learns from Yonhap News Agency.
According to the source, the two companies will include the location selection in the agreement.
The companies plan to invest about KRW 1.2 trillion ($174.68 billion) in a 50,000 tonnes/year precursor production factory in the sixth zone in Saemangeum National Industrial Park. The construction of this factory is expected to be started at the end of this year, and the goal is to complete construction in 2028.
It is said that this act is to solidify LG Chemical's domestic battery material supply chain in responding to the Inflation Reduction Act launched by the US government.
Precursors are compounds mixed by nickel, cobalt and manganese and usually make up about 65%-70% of the manufacturing cost for cathode materials.
Source:Kallanish
