LG Chem, Ltd., the largest chemical company in Korea,
announced today its new mid-to-long term business strategies
and its goals of KRWon 15 trillion in sales and a 13%
operating profit rate for 2008.
LG Chem, Ltd., the largest chemical company in Korea,
announced today that it has developed core materials for
organic EL (Electro Luminescence) and has set up plans for
mass production.
LG Chem breaks ground for EDC-VCM
project in Tianjin
On May 23, LG Chem took a ground
breaking ceremony for its VCM and
EDC project in Tanggu (塘沽),
Tianjin.
The project will be a joint
venture between LG Chem (45%), LG Petrochemical (20%), LG
International (10%), LG Dagu (10%) and Tianjin Bohai Chemical
Industry Co (15%).The investment of this project is $300m, it
will produce 350,000 tonne/year of VCM, 300,000 tonne/year of EDC
and 240,000 tonne/year of caustic soda. The project is expected
completed by the end of 2006.
The Output from the VCM/EDC plant
will be as the feedstock for LG Chem’s
existing 340,000 tonne/year PVC plant in Tianjin. The plant is
operated by Tianjin LG Dagu Chemical, a jv between LG Chem and
Bohai Chemical.
With the investment in China, LG
Chem intents to strengthen its position in the fast- growing
Chinese market.
LG Chem, Ltd., the
largest chemical company in Korea, announced today that it would
hold a groundbreaking ceremony for its VCM/EDC plant in Tianjin,
China. At the end of last year, LG Chem signed an agreement with
Tianjin Bohai Chemical Co., Ltd. to establish a VCM (Vinly
Chloride Monomer) and EDC (Ethylene Di-Chloride) plant by the end
of 2006.
Nearly all of VCM goes into PVC (Poly Vinyl Chloride), which is
used for manufacturing many plastic products in the building and
construction sector. EDC is the base chemical of which 95% is
used for producing VCM.
With a total investment of USD 300 million, the new facilities
strategically located at Lingang Industrial District, Tianjin,
China will have capacity of 350,000mt/yr of VCM, 300,000mt/yr of
EDC and 240,000mt/yr of Caustic Soda.
The new facilities will be established as a joint venture named 'Tianjin LG Bohai
Chemical Co., Ltd.';
the investors are comprised of LG Chem (45%), LG Petrochemical
(20%), LG International (10%), LG Dagu (10%), and Tianjin Bohai
Chemical Industry Co., Ltd. (15%).
Tianjin LG Bohai Chemical Co., Ltd.
Capacity
VCM
350,000 tonne/year
EDC 300,000 tonne/year
Location
臨港工業区 Lingang
Industrial District, Tianjin, China (10Km away from LG
Dagu) Tianjin Lingang Industrial Area is
situated at Tanggu District of Tianjin.
Area
of Land
500,000
m2
Total
Investment
USD
300 Mil
Shareholders
LG
Chem (45%)
LG Petrochemical (20%)
LG International (10%)
LG Dagu (10%)
Bohai Chem (15%)
Tianjin Dagu
is part of Tianjin Bohai Chemical Industry
LG Chem Builds Plant
for PVC Raw Materials in China
LG Chem, the top
South Korean chemicals maker, said on Friday that it has
built a plant for PVC (polyvinyl chloride) raw materials in
China at a cost of $300 million (281 billion won), to
directly produce plastics in the neighboring country.
(ceremony to mark the completion of a plant for PVC materials
on Sep. 6) LG
Bohai, the
firm’s Chinese unit, has completed
construction of the plant on a 500,000 square meter site in
Tianjin Province for production of vinyl chloride monomer
(VCM) and ethylene dichloride (EDC), the two main ingredients
for PVC.
Company officials expected the Chinese plant will produce
about 350,000 tons of VCM and 300,000 tons
of EDC per
year, bringing the company’s annual PVC output to a total
of 920,000 tons, the world's sixth largest in capacity.
``We aim to expand the annual PVC production at the Chinese
plant up to 400,000 tons (from 340,000tons) by 2008, a
company spokesman said. Currently, LG Chem has an annual
capacity of 580,000 tons at home.
LG Bohai will receive ethylene from LG Chem’s Daesan
factory and
produce VCM, all of which will be delivered to LG Dagu, the South Korean chemical
company’s PVC unit in China, according
to the spokesman.
LG Chem, Ltd., the
largest chemical company in Korea, announced today that the
company signed a license partnership agreement
with Mitsui Chemicals Inc., for the use of their VCM/EDC
technology.
The partnership grants LG Chem with the exclusive rights
to sublicense Mitsui's VCM/EDC technology. The partnership will not only be
beneficial for LG Chem but also advantageous to Mitsui as well.
The exclusive rights enable LG Chem to develop new clients and
further generate additional sales by promoting the technology
with a full vinyl chain. LG Chem had already obtained a full vinyl
chain technology by applying Mitsui's VCM/EDC technology with its
existing PVC technology.
2010/8/13 Platts
China's Tianjin Dagu to
delay ABS trial runs until mid-September
China's Tianjin Dagu is expected to delay test runs at the
company's first 200,000 mt/year
acrylonitrile-butadiene-styrene project at Tianjin from
mid-August to the first half of September, a company source said
Friday. The latest schedule indicates that commercial ABS cargoes
now will be available only from early October, instead of end
September as initially planned, the source added.
The company originally
planned to build the ABS plant with two 200,000 mt/year lines at
the same location by the fourth quarter of 2009, but delays with
the company's initial 500,000 mt/year styrene monomer
plant pushed
the construction schedule back almost a year.
Startup of the second
200,000 mt/year ABS line remains scheduled for the second half of
2011. Styrene monomer, which comprises 60% of ABS, will be
supplied from Tianjin Dagu's existing 500,000
mt/year plant,
while butadiene will be supplied by Sinopec Sabic Tianjin
Petrochemical.
Acrylonitrile, which
comprises 25% of ABS feedstock, will be sourced from both
domestic and international markets. In addition to sourcing
acrylonitrile from Shanghai Secco Petrochemical, discussions are
ongoing with China Petrochemical Development, South Korea's
Taekwang Industrial, Japan's Asahi Kasei and US-headquartered
Ineos Nitriles.
Platts estimates that
running the ABS plant run at maximum nameplate capacity would
require up to 50,000 mt/year of ACN, 30,000 mt/year of butadiene
and 120,000 mt/year of SM. Tianjin Dagu awarded the contract for
the ABS plants to US-based Shaw Group in January 2008. Shaw's
agreement with Sabic Innovative Plastics Technologies Inc. --
formerly GE Plastics Global Technology LLP -- will enable Tianjin
Dagu to use licensed styrenic emulsion ABS technology.
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Aug. 17, 2011 KBR
KBR to Provide Phenol License and Engineering Services for LG Chem Ltd., in
Daesan, South Korea
KBR(Kellogg Brown & Root) today announced it was
awarded a contract by LG Chem Ltd. (LG) to license KBR's leading phenol
technology for LG's 240 thousand metric tons per year (KTA) phenol plant in
Daesan, South Korea.
The Daesan plant will be the second license by LG for KBR's phenol technology.
The first phenol plant in Yesou was originally licensed in 2002 for 150 KTA and
later expanded to 240 KTA. The new plant in Daesan will be part of an
integrated, world-scale facility from cumene to BPA production. KBR will also
provide the necessary engineering services in order to help LG meet its project
schedule, which is targeting to be on-stream during the first half of 2013.
"KBR's phenol process is a benchmark in the industry and has been on the
leading-edge of phenol technology for more than 60 years," said John Derbyshire,
President, KBR Technology. "KBR's longstanding relationship with LG Chem began
with the license for LG's first phenol unit in 2002 and has continued with
ongoing cooperation in many areas of the technology. Nearly 10 years later, we
are pleased to once again offer our technology to help LG meet its growth
objectives."
KBR is a global engineering, construction and services company supporting the
energy, hydrocarbon, government services, minerals, civil infrastructure, power,
industrial, and commercial markets. For more information, visit www.kbr.com .
2013/12/18 Yonhap
LG Chem to invest 320 bln won in plant
expansion
LG Chem Ltd., one of South Korea's
leading chemical companies, said Wednesday that it plans to invest 320
billion won (US$304 million) to expand its plants for crude acrylic acid (CAA)
and superabsorbent polymers (SAP) by September 2015.
The expansion will increase LG Chem's
annual production capacity of CAA by 80,000 tons to
510,000 tons and that of SAP by 160,000 tons to
360,000 tons, LG Chem said in a statement.
SAP is used as raw materials for diapers
and CAA is used in paint, adhesives and addition agents.
The global CAA market is expected to grow
by an annual average of 6 percent to reach 5.9 million tons in 2017 from 4.4
million tons in 2002, the company said.
LG Chem predicted that its plant
expansion will increase its sales by more than 400 billion won a year.
The company plans to
increase the volume of its CAA and SAP businesses to over 1.7 trillion won
from the current 1.3 trillion won, it said.
Mar 02, 2015
LG Chem to bulk up in specialty materials,
batteries
LG Chem vice chairman and CEO Park Jin-soo said the nation's top chemicals maker
will pour more resources into its materials business, pledging
to double sales in specialty materials and batteries by
2018.
"We are working on new materials that will change the future," Park said Friday
in a press conference held at the company's plant in Yeosu, South Jeolla
Province.
"Currently, petrochemical products make up 75 per cent of our revenue. We aim to
reduce that figure to 60 per cent by 2020, while the remainder will be made up
of value-added materials."
As part of efforts to seek new growth engines, LG Chem has greatly
invested in new materials ranging from basic
materials like engineering plastics and super absorbent
polymers to lithium-ion batteries for electric vehicles.
These are higher-margin materials that have a great potential to grow in the
coming years, officials said.
The company is currently forecasting sales of 6 trillion won (S$7.4 billion) in
that area alone for 2015. It expects the figure to double to 12 trillion won in
2018.
LG Chem aims to become a global top three manufacturer of engineering plastic,
whose demand is surging for diverse applications across industries. Its
automotive sales will be elevated to 50 per cent from the current 30 per cent.
The company is also pinning high hopes on a super absorbent polymer, which is
widely used in baby diapers, as it can absorb and retain an extremely large
amount of liquid. With the expansion at its Yeosu plant complete within the
year, its production capacity will surge to 360,000 tons per year, the
fifth-largest globally. The CEO also hinted that the company could build a new
plant abroad, citing the market potential.
LG Chem, the No. 1 maker of lithium-ion batteries, the key component for
electric vehicles, has recently extended ties with global carmakers to further
widen the gap with its rivals.
"We have secured the technology to elevate the driving range of electric
vehicles to 400 to 500 kilometers," Park said. Currently, most full-electric
vehicles drive less than 200 kilometers on a single charge.
"It will not take long to produce the products," he added, declining to further
elaborate.
In line with these plans, the company plans to double investment into research
and development activities from the current 600 billion won to 900 billion won
by 2018, and increase the number of researchers to 4,100 over the next three
years.
2015-08-19
LG Chem to beef up acrylic acid, SAP production
LG Chem said Wednesday it had finished expansion work on production lines for
acrylic acid and a super absorbent polymer -- two basic materials on which the
company pins high hopes for market leadership.
Following the expansion, its production plant in Yeosu, South Jeolla Province,
has an annual production capacity of 510,000 tons of
acrylic acid and 360,000 tons of SAP, the
world’s fifth- and fourth-largest capacities, respectively.
The company predicted an additional 300 billion won ($250 million) in sales
through the new investment.
Distillation of crude oil results in the production of naphtha, which is further
cracked in the absence of oxygen to give ethylene and propylene. Acrylic acid
and SAP are derivatives of propylene. This entire process is carried out at LG
Chem’s plant.
The chemical unit of LG Group is the sole producer of acrylic acid in Korea. The
company started the production in 2004 on its own technologies and now competes
head-on with global companies like BASF, Dow and NSCL.
As part of the efforts to secure competitiveness in basic materials, the company
has also poured resources into the SAP business since 2008, becoming the No. 4
player in the market.
Buoyed by increased production capacity and improved productivity, LG Chem said
it aims to elevate sales of acrylic acid and SAP from the current 1.1 trillion
won to 1.7 trillion won by 2020.
“Since our entry into the acrylic acid and SAP business, LG Chem has become a
global player in the field through large-scale investment and research and
development efforts,” said LG Chem’s basic material business chief Sohn Ok-dong.
“We will be ramping up our efforts to lead the market.”
According to the company, the market for acrylic acid is expected to grow from
the current 4.9 million tons last year to 6.7 million tons by 2020, while that
of SAP is estimated to increase from 2.3 million to 3.4 million in the next five
years.
January 11th, 2016
LG Chem Jumps into Agro-chemical Business
LG Chem, South Korea’s top chemicals and battery maker, will take over
Dongbu Farm Hannong (東部ファーム韓農), the largest pesticide and fertilizer
producer in the nation. LG Chem said on Jan.8 that it will purchase a 100
percent stake in Dongbu Farm Hannong for 515.2 billion won ($429.3
million).
LG Chem’s takeover of the agrochemical business unit of the ailing Dongbu Group
is expected to be complete sometime in March after due diligence and evaluation
of the M&A decision are carried out. Then, why has chemical company LG Chem
decided to buy a pesticide and fertilizer producer?
LG Chem says its acquisition of Dongbu Farm Hannong is part of its endeavors
to secure a new growth engine. "Global chemical companies have been
intensively developing their agro-chemical business into their future flagship
business. LG Chem’s takeover of Dongbu Farm Hannong will help LG Chem evolve
into an advanced global chemical processor," said Park Jin-soo, vice chairman of
LG Chem.
As a matter of fact, most of the global agochemical household names are major
chemical companies, such as BASF, Dow Chem and Simitomo.
BASF, the largest chemical producer in the world, has been continuously pushing
for M&As. Dow Chemical and DuPont have recently announced that they will merge.
“There is a limit to the growth of LG Chem’s petrochemicals business as the
Chinese economy has slowed down. Global chemical companies are reshaping their
business portfolios by selling off underperforming divisions and acquiring
high-growth businesses. In that sense, the ago-chemical sector is a very
lucrative market,” said Lee Ung-joo, an analyst at Seoul-based Shinhan
Investment Corp.
Many think that LG Chem’s takeover of Dongbu Farm Hannong will serve as a plus
in the chemical company expanding its business from basic materials
(petrochemical), information-electronic materials and secondary batteries to
agricultural chemistry (e.g. plant seeds and crop protective materials).
Dongbu Farm Hannong, South Korea's largest processor of agricultural materials,
takes the largest share of 27 percent in the crop
protection chemicals market and the second-largest share of
19 percent in the seed and fertilizer market.
The worldwide agricultural chemistry sector is expected to expand from $100
billion in 2014 to more than $140 billion in 2020, growing, on average, 6
percent a
LG Chem drops plan to build $4.2 bln Kazakh
petrochem complex
South Korea's LG Chem said on Tuesday it had
decided to drop a plan to jointly build a $4.2-billion petrochemical complex in
Kazakhstan, citing a prolonged slump in oil prices and a sharp increase in
facility investments.
In 2011, the chemical company said it would construct the complex near the
western Kazakh city of Atyrau as part of a 50-50 joint venture with two Kazakh
companies.
The plan involved building ethylene and polyethylene plants with annual
capacities of 840,000 tonnes and 800,000 tonnes, respectively.
LG Chem also said it had cancelled its plan to invest in the polysilicon
business, citing difficult prospects for a market turnaround in the short term.
In 2011, the company said it would build a 5,000-tonne-per-year plant, at a cost
of 491 billion won ($408 million), to manufacture polysilicon, which is used to
make solar panels
LG International, Tehran sign deal to cooperate in developing EVs
LG International Corp., the trading arm of South Korea's LG Group, said Friday
that it has signed a tentative deal with the Iranian government to cooperate in
developing electric vehicles and establishing necessary infrastructure.
Under the deal, LG International will work with local companies
to develop electric vehicles and build charging stations.
They also agreed to produce about 60,000 units of EVs by 2023.
Other details on the terms of the agreement were not known. Both sides are
seeking to finalize the deal within this year.
LG International will oversee the project jointly with the Iranian government.
Other affiliates, such as LG Electronics, LG Chem and LG Innotek, will lead
efforts to develop batteries, electric motors and key auto parts, the company
said.
2016/07/25
Yonhap
LG Chem to jack up elastomer output
LG Chem Ltd., South Korea's top
chemical maker, said Monday that it would spend some 400 billion won (US$352
million) in expanding its output of elastic polymers in a bid to meet
growing demand.
The company said the new plant in Daesan, some 140 kilometers south of
Seoul, will have a capacity to produce 200,000 tons of
elastomer, which will raise its total output of the elastic polymer
to 290,000 tons by 2018.
Elastomers are elastic materials mostly
used to make seals, high-quality adhesives, shock absorbers and molded
flexible parts. Their production requires specialized catalysts and
high-tech manufacturing processes, and currently only four companies in the
world make them.
With the output increase,
LG Chem will emerge as the world's No. 3 producer.
LG Chem will invest $100 million to expand manufacturing capacity of durable
plastic at its Huanan factory in Guangdong, southeastern China, the Korean
chemical maker said Monday.
LG Chem said it will increase manufacture of high value-added
acrylonitrile-butadiene-styrene (ABS)
by 150,000 tons per year.
Added to 900,000 tons of ABS production
capacity at a factory here in Yeosu, South Jeolla Province, and another 800,000
tons at its Ningbo plant in China, the Huanan factory is expected to produce
300,000 tons of ABS a year by 2018, boosting LG Chem's annual production by 2
million tons. The company expects this will help increase its global ABS market
share to 26 percent by 2018, up from 21 percent now.
"By maximizing our international brand
awareness and our differentiated technical services in the ABS sector, we will
strengthen our dominance in China's largest Huanan market," said Son Ok-dong,
president of LG Chem's Basic Materials Business, in a statement. "We will also
utilize the facility as an advance base for the newly emerging Southeast Asian
markets to solidify our top position in the industry."
ABS, which is one of the most popular high value-added plastic synthetic resin
products, is highly thermostable and crashworthy and thus is widely used as a
key material for car and electronics.
Currrently, China takes more than 50 percent of global ABS demand. In
particular, more than half the country's total ABS demand comes from the Huanan
area, according to the company.
In 2008, LG Chem established a joint venture with China's state-run petroleum
and natural gas provider China National Offshore Oil Corp. The company said the
extra investment in the Huanan factory will increase its
stake in the joint corporation by 70 percent, up from the current 50 percent.
LG Chem said its annual sales will expand by 700 billion won once the expanded
manufacturing facilities go online.
"The expansion of the Huanan ABS factory means much to us as it will lead not
only to an increase of manufacturing scale but also will help us strengthen our
business control over the joint corporation," Son said.
The company said it has recently increased ethylene production by 230,000 tons
at the Naphtha Cracking Center in its plant in Daesan, South Chungcheong
Province. It also modified its manufacturing facilities for polystyrene, which
has been oversupplied in the market, to produce ABS products, aiming at boosting
profitability in the basic materials business.
04 July 2018
Nemaska signs 7 000 t/y lithium offtake
agreement with LG Chem
Canada’s Nemaska Lithium and Korean chemical
company LG Chem have signed an offtake agreement that provides for the supply of
battery grade lithium hydroxide by Nemaska to LG.
“We are pleased with this first step towards establishing a long-term commercial
relationship between LG and Nemaska. The signing of this agreement is a clear
vote of confidence by LG in our business plan and our capacity to be a long-term
supplier of lithium hydroxide,” said Nemaska president and CEO Guy Bourassa.
Under this agreement, Nemaska agrees to supply LG, on a take-or-pay basis and
through its wholly-owned subsidiary Nemaska Lithium Shawinigan Transformation,
with 7 000 t/y of lithium hydroxide, which is
produced at Nemaska’s commercial plant in Shawinigan,
Quebec, for an initial five-year period, scheduled to start in October
2020.
Nemaska is entitled, if ever necessary, to reschedule the start of the supply
period, within certain parameters set out in the agreement and based on the
anticipated commissioning, ramping up and production start date for the
Shawinigan plant.
Nemaska will be operating the Whabouchi mine, also
in Québec. The spodumene concentrate produced at the Whabouchi mine will be
processed at the Shawinigan plant using a unique membrane electrolysis process
for which Nemaska holds several patents.
ーーー
In April, 2018, SoftBank Group agreed to
invest up to C$99.1 million (US$77.6 million) in Nemaska for up to a 9.9%
stake in the company and gained the right of first offer to buy up to 20% of
the lithium hydroxide and lithium carbonate produced at the Shawinigan
plant.
LG Chem to build
$1.8 bln EV battery plant in China
South Korea’s LG Chem plans to
invest about 2 trillion won ($1.77 billion) to build its second
electric car battery plant in China to meet growing demand, a
company spokesman said on Wednesday.
The factory is expected to
gradually expand the product capacity by 2023 and produce
up to
32 gigawatt-hours (GWh) a year, the amount enough for
500,000 cars.
LG will break ground on the
new factory in October and expects to begin production in
October 2019.
It plans to boost capacity by
2023 at the factory, which like its current plant will be built
in Nanjing.
LG Chem currently runs four car
battery plants -- in Nanjing, Poland, South Korea and the United States.
The four plants had a combined 18-gigawatt-hour battery pack capacity at
the end of 2017.
"The company aims to achieve a total
70-gigawatt-hour battery pack capacity by 2020 from its plants," the
spokesman added.
LG Chem’s EV battery plant
in Poland is
currently operating with an annual production capacity of
100.000 batteries. However, due to an expected massive shift to electric cars from European
automakers during the next decade, LG Chem already plans to soon triple the
annual production capacity to 300.000 units.
LG Chem to invest
$2.3 billion to increase its ethylene, polyolefin output
LG Chem, South Korea’s largest
chemical company, plans to spend 2.6 trillion won ($2.3 billion)
to expand its ethylene and polyolefin production capacity by
2021, it said on Monday.
The investment is part of the
company’s efforts to focus on boosting lucrative items and
strengthen its competitiveness, it said in a statement.
The expansion will increase
the production capacity of LG Chem’s naphtha cracker in the
southwestern city of Yeosu
by 800,000 tonnes per year (tpy) of
ethylene and polyolefin, the company said in a regulatory
filing.
The expanded plant is
expected to start producing from the second half of 2021, and to
increase the company’s total ethylene production capacity to
3.3 million tpy by 2022, according
to the company’s statement.
Currently, LG Chem operates a
1.16 million tpy ethylene plant in Yeosu
and another 1.04 million tpy ethylene
plant in the southwestern city of Daesan.
2018/8/15
China’s Ganfeng Lithium Signs supply agreement with Korea’s LG Chem
China’s Ganfeng Lithium 江西贛鋒鋰業 has signed a supply agreement with Korea’s LG
Chem to supply 47,600 tonnes of the battery material.
Shenzhen-listed Ganfeng, one of China’s largest lithium producers, will provide
lithium hydroxide from January 2019 until the end of 2022, it said in a
statement.
The deal is the latest sign of battery makers securing raw materials to meet
rising demand for electric cars.
The lithium will be supplied at market prices to LG Chem, one of the largest
producers of batteries for electric cars, Ganfeng said.
In July LG Chem signed a deal with Canada’s Nemaska
Lithium for five years supply of lithium hydroxide.
Electric car makers are moving to using more powerful higher-nickel batteries,
which tend to use lithium hydroxide rather than lithium carbonate, which is the
current dominant chemistry used in batteries.
2018/09/12
LG Chem acquires U.S. adhesive firm
Uniseal
LG Chem Ltd., South Korea's biggest chemical
company by sales, said Wednesday that it has acquired
Uniseal, Inc., an American maker of specialty
adhesives and sealants in a move to diversify its business portfolio.
LG Chem purchased a 100 percent stake in
Uniseal from its parent company, Koch Enterprises, Inc.,
in a deal worth about 150 billion won (US$133 million), according to a person
familiar with the deal who spoke on condition of anonymity because he was not
authorized to speak publicly.
The acquisition strengthens LG Chem's
business portfolio in materials used in the auto industry.
Currently, LG Chem is a key supplier of
batteries to U.S. auto giant General Motors Co., European companies Volvo and
Renault and South Korea's Hyundai Motor Group.
LG Chem Vice Chairman and CEO Park Jin-soo
said his company will nurture vehicle adhesives
into a global business, noting such materials are a promising business as
carmakers are pushing to reduce the weight of cars.
Uniseal products are used in the
transportation industry, and the automotive, heavy truck and trailer market
segments account for over 80 percent of the company's business, according to
Koch Enterprises. Uniseal customers include U.S. auto giants GM and Ford Motor
Co.
In 2017, Uniseal sales reached about 63
billion won, LG Chem said.
The Evansville, Indiana-based company's
primary manufacturing facilities are located in Evansville, Shanghai, Retsag in
Hungary and Chennai in India.
Oct 25, 2018
LG Chem invests USD 1.8 bln into Nanjing
electric-vehicle battery plant
South Korean LG Chem has commenced construction of a
second electric-vehicle battery factory in Nanjing, China which will
start manufacturing next year.
The company plans to invest USD 1.8 billion into the site by 2023. The
factory will hit a production capacity of 500,000
units annually by the end of next year and will look to supply
batteries to Chinese and other Asian electric vehicle manufacturers.
With the new factory, LG Chem will have 5
electric-vehicle battery factories around the world.
Two in China and one in South Korea, U.S. and Poland each. This puts
the company in a strong position to capture the global electric vehicle wave
which is expected to grow more than 5% starting 2020.
LG Chem is positive about the economic
development of China and aims to provide services for the fast-growing needs
of its customers and also contribute to the growth of China’s economy.
In addition, LG Chem also enjoys a strong
customer base. Earlier this month, the company inked a deal with Volkswagen
to provide the automaker with batteries starting from end-2019. Its current
customers include, Hyundai and Kia in South Korea, Ford, Chrysler and
General Motors in the U.S., as well as Audi, Volvo, Renault, Daimler and
Jaguar in Europe.
28 November 2018
LG Chem to expand Polish EV battery
production
South Korea's LG Chem is posed to expand its electric vehicle (EV) battery
business in Poland, less than a year after opening its factory there.
LG Chem's board of directors today approved investment of
$571mn in LG Chem Wroclaw Energy to fund the expansion. The project will
run from next month to April 2021, and it may triple the
unit's output capacity in Poland to 300,000 EV batteries annually from the
current 100,000. LG did not say whether the new production lines will be
built at its existing factory near Wroclaw or on a separate site.
The latest investment will exceed the amount that LG Chem spent to build its
Polish plant by about 63pc. The current factory, which opened earlier this year,
is located in Kobierzyce, about 20km southwest of Wroclaw. LG Chem's decision to
expand so quickly comes after the company last month signed a contract
to supply EV batteries to German automaker Volkswagen.
LG Chem joined its South Korean rivals, SK Innovation and Samsung SDI, in
signing supply deals with Volkswagen. The automaker plans to introduce 50 new
electric-only models under its various nameplates by 2025, aiming by that year
to sell more than 1mn units annually under the Volkswagen brand alone.
SK Innovation earlier this week approved
investment of 1.4 trillion won ($1.24bn) to build an EV battery plant near
Atlanta that will supply Volkswagen vehicles in North America. All three major
South Korean battery producers are following a strategy of setting up large
production centres in their home country, China, central Europe and the US to
capitalise on rising global demand.
There were 3.1mn EVs in use globally last year, up 54pc from 2016's level, with
the IEA forecasting this to rise to about 125mn by 2030.
December 19th, 2018
LG Chem、豪州のKidman
Resourcesとリチウムの長期購入契約締結へ
LG Chem は12月19日、豪州のKidman Resources
との間で、Kidman が運営する豪州のMount Holland リチウム計画の水酸化リチウムを10年にわたり購入する非拘束の覚書を締結した。
Univation Signs UNIPOL™ PE Technology Agreement with LG Chem
Univation Technologies has signed
an agreement to license UNIPOL™ PE Technology to LG Chem., Ltd.
) for 2x300 kTA polyethylene plants
to be built at LG Chem’s petrochemical site in Yeosu, Korea.
The two new plants will enable
LG Chem to serve both LLDPE and HDPE market segments with one
plant focusing on differentiated
metallocene LLDPE products and the other on a full-range
of HDPE applications.
Supporting these
market-centric objectives, LG Chem is accessing a full-density
range of Univation’s UNIPOL™ PE Product capability including
Univation’s XCAT™ Metallocene LLDPE Technology for metallocene-based
film structures such as high-performance blown stretch film
applications as well as advantaged packaging film applications.
LG Chem will also utilize Univation’s ACCLAIM™ Unimodal HDPE
Technology for advanced unimodal products and PRODIGY™ Bimodal
HDPE Technology for unique bimodal HDPE products.
LG Chem has also licensed
Univation’s advanced process control system, PREMIER™ APC+ 2.0,
and Univation’s latest platform for virtual plant simulation
training: UNIPOL™ PE Virtual Process Software (UVPS).
“We are honored to be
selected by LG Chem as their polyethylene technology licensor
for these two new polyethylene plants,” said Dr. Steven Stanley,
president of Univation Technologies. “The inherent flexibility
of these UNIPOL™ PE Plants will enable LG Chem to serve a broad
array of key LLDPE and HDPE applications satisfying
sophisticated Korean market requirements while also producing
export-ready grades to capture overseas market opportunities.”
An LG Chem spokesperson
commented, “LG Chem maintains its strong commitment to providing
our customers with high-performance, high-quality polyethylene
resin supply.” The spokesperson continued, “This latest
investment in these two new UNIPOL™ PE Technology plants
provides LG Chem with the additional capacity, production
flexibility and advantaged product capability required to meet
the growing customer demand in the markets we serve. We value
the collaborative relationship that Univation has developed with
LG Chem, and we look forward to continuing that close working
relationship as together we bring these two new plants safely
into operation.”
2019/4/2
LG Chem Acquires
DuPont’s Tech for Soluble OLEDs
SEOUL, Apr. 2 (Korea
Bizwire) — LG Chem Ltd., South
Korea’s leading chemicals maker, said Tuesday that it has acquired a key
technology and related assets from global high-tech chemical firm DuPont for
next-generation soluble organic light-emitting
diodes (OLEDs).
Under the deal, LG Chem acquired DuPont’s technologies and patents for
soluble OLEDs as well as its R&D and production facilities, it said.
The value of the deal was not revealed, but industry sources estimated it to
range from 200 billion won (US$176 mln) to 300 billion won.
The soluble OLEDs technology uses an inkjet printing method to add a soluble
material to a panel, thus producing high-performance displays more
economically and reducing material waste.
“With this deal, we have secured top competitiveness in the soluble OLED
sector,” LG Chem said.
LG Chem has been racing to beef up its materials business to diversify its
business portfolio, which ranges from EV batteries to high-end chemicals.
Earlier this week, LG Chem established a new business division to better
focus on advanced materials.
April 7, 2019
LG Chem
sets up joint venture with Vietnam's VinFast
South Korea’s LG Chem said
on Sunday that it has set up a joint venture with Vietnam’s
VinFast Trading and Production to produce
lithium-ion batteries for the Vietnamese carmaker’s
electric scooters and electric vehicles.
The two companies established
their joint venture factory in the Vietnamese northern port city
of Hai Phong, with an aim to produce lithium-ion battery packs
for VinFast’s electric scooters that are being made now and
electric cars to be produced in the future, the South Korean
battery maker said in a statement.
The plan comes as VinFast, a
unit of Vietnam’s largest conglomerate Vingroup JSC, aims to
become the country’s first domestic car manufacturer and targets
to produce 250,000 cars per year. Vingroup has earmarked $3.5
billion for its overall car manufacturing project.
Part of the joint-venture
plans include providing premium products that meet international
standards and supplying lithium-ion battery cells for electric
devices and other products belonging to Vingroup, the statement
added.
April 30, 2019
LG Chem Alleges Trade Secrets Theft, Files
Federal Suit against SK Innovation
The wholly-owned US manufacturing subsidiary of LG Chem, Ltd., the global leader
in pouch-type lithium ion battery manufacturing whose unique technology
underpins a significant share of the American electric vehicle market, filed on
Monday a pair of lawsuits against South Korean-owned SK Innovation., Ltd. for
misappropriation of trade secrets, tortious interference with prospective
economic advantage and other claims.
Brought jointly by LGCMI, the US-subsidiary, and its parent corporation, the
suits were filed concurrently with the United States International Trade
Commission and the United States District Court of Delaware.
The suits allege that defendants accessed trade secrets by
SK Innovation’s hiring of 77 highly skilled and experienced employees in
the lithium ion battery division of LG Chem, which
developed the world’s first commercial pouch-type Li-ion battery for
automobiles. This technology has been adopted by automotive manufacturers
worldwide as well as other consumer electronics applications.
These employees include dozens of engineers involved in the research and
development, manufacturing and assembly, and quality assurance testing of Li-ion
batteries, including the newest and most advanced generation battery technology.
The lawsuits allege that a significant number of these workers engaged in the
theft of LG Chem’s trade secrets to benefit SK Innovation in the development and
manufacturing of pouch-type Li-ion batteries, of which LG Chem is the world’s
leading supplier.
An internal audit of company communications and other data revealed that these
employees openly conspired not only to steal LG Chem’s trade secrets but to
leverage that information in employment considerations before SK Innovation.
Applications and curriculum vitae, written specially for SK Innovation and
stored on LG Chem computers, found these employees traded in LG Chem’s valuable
trade secrets to secure employment with SK Innovation. For example, one of these
employees inserted LG Chem’s key technical trade secret information regarding
electrode manufacturing process on his curriculum vitae for SK Innovation. Even
worse, some of these employees downloaded 400 to 1,900 key technical documents
from LG Chem’s data server before their move to SK Innovation.
Coincidentally, from the end of 2016 – when the move of these 77 employees began
– to the beginning of this year, SK Innovation’s aggregated amount of EV battery
supply in contract has increased by more than fourteen times.
“SK Innovation has taken LG Chem’s highly skilled engineers and other critical
business services staff, thereby gaining access to LG Chem’s highly valued
lithium ion battery trade secrets. As a direct consequence of that theft, SK
Innovation has begun manufacturing and selling imitation Li-ion batteries to LG
Chem’s customers and prospects across the world,” Hak Cheol Shin, Vice Chairman
and Chief Executive Officer of LG Chem, said. “SK Innovation’s blatant disregard
for the rule of law damages the integrity of the free market and disrespects the
innovators whose blood and sweat created a technology that’s proven vital to a
greener world.”
LG Chem is seeking injunctive relief to cease any importation of Li-ion
batteries, including both commercial Li-ion battery cells and modules, and to
bar SK Innovation from importing the manufacturing and testing equipment
necessary to build Li-ion batteries, as the machinery similarly relies on LG
Chem’s trade secrets. Additionally, the company is seeking to prevent further
disclosure and use of trade secrets and significant monetary damages.
LG Chem has already dealt with SK Innovation on a similar issue in Korea, where
it sued five of its former employees who moved to SK Innovation for breach of
their non-compete obligations. The Supreme Court of Korea
ruled in favor of LG Chem, holding that the actual threat of potential
disclosure of LG Chem’s valuable trade secret information justified the
enforcement of the non-compete obligations. Despite such result, SK Innovation
continued to poach LG Chem’s employees even to this point.
South Korea's LG Chem to team up with
China's Geely on EV batteries
South Korean battery maker LG Chem Ltd
said on Thursday it had signed an agreement to set up a joint venture with
China's Geely Automobile Holdings Ltd 吉利汽車
to produce batteries for electric vehicles.
The joint venture would have annual
production capacity of 10 GWh by the end of
2021, and its products would be supplied to Geely's electric vehicles from
2022, LG Chem said in a statement.
The two parties would invest $94 million
each in the venture, LG Chem said in a statement.
Vehicles equipped with South Korean
batteries currently are not eligible for government
subsidies in China, the biggest auto and EV market in the world.
But Korean battery makers including LG
Chem have announced investment plans to expand capacity in China, hoping
China’s plan to phase out subsidies over the next couple of years will level
the playing field.
"Through the joint venture, LG Chem has
secured a stable structure to provide batteries for electric vehicles to the
Chinese market," LG Chem said in a statement.
The South Korean company said it would
pursue more joint ventures with other global carmakers.
LG Chem is investing 65 billion KRW ($53
million) to expand production capacity of carbon nanotubes at its Yeosu
plant in South Korea by 1,200 tons annually (from 500 tons to 1,700 tons) by
Q1 2021.
Global demand for CNT was reportedly
3,000 tons annually, which means that LG Chem already controlled one-sixth
of the market and now will increase its output by 240%.
The main reason for the expansion is lithium-ion batteries. In particular,
batteries for electric cars.
LG Chem has worked on CNT since 2011 and
its first 20-ton pilot line was launched in 2013.
By 2024, global demand for CNT is
expected to reach 13,000 tons, especially since there are plenty of
applications other than batteries.
June 03, 2020
LG Chem batteries to power
Vietnam’s first-ever EV
LG Chem said on June 3 it will power
Vietnam’s first-ever electric vehicle, which can travel up to 500
kilometers on a single charge.
According to LG Chem and local media, Vietnam’s first domestic
carmaker VinFast will load its first EV
models with lithium-ion batteries manufactured by LG Chem.
“We expect to officially debut the model at the Los Angeles Auto Show in
November 2020; launch a test program in January 2021 and mass produce
the cars by July 2021,” a VinFast official said.
VinFast’s first EV on the
road (Reuters)
“Though LG Chem can’t reveal the
exact battery type VinFast will use, it mainly sells NCM (nickel cobalt
manganese) 523 and NCM 622 batteries,” a company official said.
LG Chem signed a memorandum of understanding with VinFast in September
2018 and set up a joint venture with the company in April last year to
produce lithium-ion batteries for the automaker’s electric scooters and
EVs.
VinFast sold 5,124 cars in the local market in the first quarter this
year, putting it in fifth place and ahead of brands that include
Mitsubishi, Mazda and Ford, according to local media.
----
2020.06.10
↑ VinFast’s first EV
LG Chem rides fast in Vietnamese
battery market by powering two wheels
South Korea’s leading
battery maker LG Chem Inc. finds money in Vietnam, a
country of two wheels, by powering e-scooters that have
been catching on fast.
A JV it has established last year with Vietnam’s top
automaker VinFast supplied lithium-ion battery packs for
more than 30,000 units of e-scooter over the past year.
LG Chem and VinFast began operating the plant in June
last year, two months after they established the JV in
April. VinFast, a car making unit of Vietnamese biggest
conglomerate Vingroup, released its first e-scooter
equipped with a cylindrical battery in November 2018 and
has installed LG Chem’s batteries to three models. The
company sold 45,118 units of e-scooters until the end of
last year, of which 30,000 units were powered with LG
Chem’s batteries.
The Vietnamese e-scooter market has been rapidly growing
with around 200,000 units sold per year on average,
compared with just 50,000 units sold in 2017.
VinFast is set to unveil the country’s first electric
car installed with LG Chem’s battery in November this
year and start mass production in January next year.
VinFast, which had entered the finished car market in
2018, sold 5,124 units of vehicles in the first quarter
ended March this year, becoming the fifth largest
carmaker following Hyundai, Toyota, Kia and Honda in
Vietnam.
The Vietnamese government has imposed several rules to
regulate motorcycles due to heavy traffic and
environmental reasons, but the demand for e-scooters is
forecast to increase because the public transportation
system is underdeveloped in the country. “Motorbike
sales went down 70 percent in April from a year ago due
to the impact of coronavirus, but the figure is
projected to reach above 3 million by the end of the
year,” an industry source said. “There is a huge growth
potential in the Vietnamese e-scooter market if charging
stations are added.”
June 10, 2020
LG Chem in $1.1
billion deal with China's Shanshan to sell LCD polarizer
business 液晶ディスプレイ偏光板
South Korea’s LG Chem Ltd
said on Wednesday it has signed a conditional contract with
China’s Ningbo Shanshan Co Ltd to sell most of its liquid
crystal display (LCD) polarizer business for $1.1 billion.
Ningbo Shanshan
Co.,Ltd. 寧波杉杉 manufactures apparels.
The Company produces suits, casual wear, shirts,
uniforms, and other apparel products.
Ningbo Shanshan also produces
lithium ion battery materials.
The chemicals and battery
maker said some of its LCD polarizer business including
those for automobiles would be
excluded from the sale. Polarizers improve the
display function in products.
“We are going to focus on
strengthening our competitiveness in tech materials,
especially organic light-emitting diode (OLED) and nurture
our OLED polarizer business,” LG Chem said in a statement.
The company said the deal
is pending approval from its board of directors, and the
terms are subject to change. It said it plans to make
another announcement once the deal is finalized.
Ningbo Shanshan said on
Tuesday it plans to raise up to 3.1 billion yuan ($438
million) in a share placement to fund acquisition of a
majority interest in LG Chem’s LCD polarizer business in
China, Taiwan and South Korea.
2020/6/22
LG Chem considering closing down phthalic
anhydride line in Yeosu
LG Chem Ltd. is considering shutting down its production line in the
southeastern tip of the country due to oversupply,
industry and company sources said Sunday.
South Korea's No. 1 electric vehicle battery maker said it has informed its
workers of the plan to close down the line in Yeosu, 455 kilometers southeast of
Seoul, which produces 50,000 tons of phthalic anhydride
annually.
Phthalic anhydride is used in the manufacturing of polyesters.
Industry watchers believe that LG Chem's plan stemmed from the oversupply of the
organic compound caused by Chinese rivals, which have been eating into its
profits, and a toxic gas leak in its Indian plant.
"The phthalic anhydride production line has been operating so far," said an LG
Chem official, adding the company has been reviewing the feasibility of the line
and market situation.
2020/7/8
Andhra police arrest LG Polymers’
top executives in styrene gas leakage accident
The styrene gas
leakage at the South Korean firm’s unit on early hours of May 7 killed
15 persons and affected over thousand people in the colonies and
villages in around 2 kilometre range.
A day after the high power committee
submitted its report on styrene gas leakage accident at South Korean firm LG
Polymers’ unit at Visakhapatnam in May, the Andhra Pradesh police announced
arresting the company’s managing director and chief executive and eleven top
executives.
The company management blamed the mishap on an unfortunate auto-polymerisation
process that took place during more than 40 days of a shutdown of the
operations during the national lockdown due to the Covid-19 pandemic. The
accident took place while LG Polymers was preparing to resume operations on
May 7 after being closed for weeks during the lockdown.
The arrested include LG Polymers India’s MD & CEO Sunkey Jeong, technical
director DS Kim, additional operations director P Poorna Chandra Mohan Rao,
and nine others including the engineers responsible for the operations.
Within hours, the AP Pollution Control Board on Wednesday announced
suspending the current and previous regional officers of PCB at
Visakhapatnam “in response to the report submitted by the high power
committee on LP Polymers Visakhapatnam gas accident.”
Immediately after the arrest, the AP police in a statement said,
“Investigation discloses that the accident at M6 Styrene storage tank was
taken place due to negligence of the above persons who are also having
knowledge that such of their acts are likely to cause death.”
Producing the 12 accused executives of LG Polymers before the court seeking
their judicial remand, the police, under the supervision of Visakhapatnam
Police Commissioner RK Meena, said the “case is under investigation in stage
as reports from various departments have to be received and examination of
witnesses.”
The Andhra police said the investigation so far revealed that the accident
occurred due to “the poor design of M6 tank, inadequate refrigeration and
cooling system, absence of circulation systems, inadequate measurement
parameters, weak safety protocol, poor safety awareness, inadequate risk
assessment and response, poor management, slackness of management,
insufficient knowledge amongst staff, insufficient understanding of the
chemical properties of Styrene, especially during storage under idle
conditions and total breakdown of the emergency response procedures.”
Earlier, amid reports that LG Polymers shifted styrene gas from its storage
tanks to South Korea after the accident pending probe, the Andhra Pradesh
High Court on May 24 ordered the closure of the factory and barred the
company directors from leaving the country.
A week after the toxic gas leakage accident, LG Polymers announced bringing
its experts team from South Korea to investigate the cause of accident and
support the rehabilitation, and said the styrene monomer inventory was
shifted to South Korea by vessels “to prevent and eliminate all risks
factors.”
The South Korean firm is currently involved in a legal battle with the
Indian courts including the National Green Tribunal at Delhi which had
invoked ‘strict liability’ clause against LG Polymers and ordered to deposit
an initial amount of Rs 50 crore for compensation against the damage to
life, public health and environment.
2020.08.14 pulsenews.co.kr
LG Chem pushes bio pipeline
starting with COVID-19 vaccine candidate: life science chief
LG Chem, which has kept low
profile while its rivals in Korean household corporate names
Samsung and SK have made headlines in bio breakthroughs or
expansion, aims to initiate a phase 1
human clinical study of its COVID-19 vaccine candidate
within this year after completing its ongoing preclinical
tests of the hopeful, according to Son Ji-woong, head of the
company’s life science business.
During a recent interview with Maeil Business Newspaper, Son
said the investigational vaccine is being developed as a
protein subunit vaccine like other COVID-19 shot hopefuls
being addressed by SK Bioscience and GC Pharma.
A subunit vaccine is a fragment of a pathogen, typically a
surface protein used to trigger an immune response with no
viral replication in the body.
While developing its own COVID-19 vaccine internally, LG
Chem will push for a CMO deal for commissioned production
with other vaccine developers at home and abroad to ensure
fast supply around the world, Son said, citing the company’s
production expertise and capacity proven with various
vaccines and popular diabetes drug Zemiglo.
In addition, LG Chem will remain active in open innovation
to bring in candidate molecules from outside for internal
development, while focusing its mainstay therapeutic areas
on oncology and metabolic disease.
The company has so far secured 40 hopefuls in the pipeline,
eight of which have been introduced from outside since Nov.
2018.
One of the candidates closest to market is a head and neck
cancer med in-licensed from U.S. biotech startup Q Biopharma.
The compound, which is under phase 1 trial in the U.S., will
be a first-in-class drug whose mechanism of action is
lesion-specific immunity activation to fight cancer, Son
said
After the merger with LG Life Sciences, LG Chem raised its
R&D spending from 15 percent to 25 percent against sales
over the past three years. LG Chem’s sales target for life
science business is 660 billion won ($556 million) this
year.
LG Chem Splits Battery Business “Foster into
the World’s Best Energy Solution Company”
■ Enhance corporate value and stockholder value
through concentration on the business area of
expertise
■ Physical division where LG Chem possesses 100% of
new battery corporation
- Official launching of the new battery
corporation ‘LG Energy Solutions (tentative name)’
from December 1ecember 1ecember 1ecember 1ecember 1
■ Expected to strengthen expertise in business
sector and improve operational efficiency
■ Foster the new corporation
into the world’s best energy solution company with
sales exceeding 30 trillion KRW by 20204
LG Chem will split its global NO.1 battery business.
Regarding this, LG Chem announced on that it held a
board meeting on the 17th and resolved a
corporate spin-off plan to
raise corporate value and stockholder value by
concentrating on the business area of expertise.
Accordingly, LG Chem plans to receive approval from the
extraordinary meeting of stockholders on October 30 and
officially launch ‘LG Energy
Solution (tentative)’ as a new corporation
exclusively in charge of the battery business
from December 1.
This will be a physical division in which LG Chem will
possess all of the stocks issued by the new battery
corporation and LG Chem will possess 100% of the
non-listed shares of the new corporation.
Regarding this corporate spin-off, LG Chem said, “We
came to the judgment that this is the right time for the
corporate spin-off as the battery industry is growing
rapidly and structural profits in the EV battery sector
are being made in earnest,”
And added, “The corporate spin-off will make it possible
to focus on the specialized business areas and enhance
management efficiency, thereby upgrading corporate value
and stockholder value.”
Regarding the physical division method that will be
used, it was stated, “Improved corporate value through
the growth of the new corporation will also have a
positive impact on the mother company, and we also
considered the advantages from the synergy effects of
the two companies such as R&D cooperation as well as
association of battery materials businesses such as
anode materials.”
LG Chem plans to foster the new corporation to achieve
sales of over 30 trillion KRW in
2024 and become the world’s best energy solutions
company based on batteries. The expected revenue of the
new corporation is around 13
trillion KRW this year.
Regarding the IPO (initial public offering) of the new
corporation, it stated that “Nothing is confirmed as of
now and we plan to continuously review it in the
future.”
It added, “Cash generated from business activities will
be used as the facility investment funds according to
the increase of EV demands and since LG Chem possesses
100% of the shares, it will be possible to procure the
funds using various methods.”
Background and Effects of Split-Off
The reason why LG Chem decided to split the company
because it judged that this is the optimal point in time
to reevaluate the corporate value and maximize
stockholder value considering the performance of the
battery business and the market situation.
In fact, LG Chem created the foundation for creating
structural profits in the EV battery business and posted
its highest operating profit in the battery business.
Furthermore, it has currently procured more than 150
trillion KRW in orders on hand in the EV battery
business and it is investing over 3 trillion KRW
annually in facilities, and therefore,
the need to procure large
investment funds in a timely fashion has also increased.
Through this division, it will be possible to attract
large investments, while easing financial burdens by
establishing an independent financial structure system
for each business sector.
Another reason for this division is the need for prompt
decision-making to respond to the rapidly changing
market, as well as the rising need for flexible
organizational operation.
Through this corporate spin-off, LG Chem will be able to
receive appropriate evaluation of business value for
each of its business fields including the battery
business. In addition, the increased corporate value
with the growth of the new corporation will make it
possible to increase corporate value of the mother
company while maximizing stockholder value.
In addition, it is expected that it will be possible to
focus capacities on areas of expertise while allowing
independent and prompt decision-making according to the
business features, while upgrading management and
operational efficiency.
LG Chem plans to foster the new corporation to become
the world’s best energy solutions company for not only
battery materials, cells, pack manufacturing and sales,
but also to have distinguished competitiveness in the
E-platform sector that offers various services
throughout the lifetime of batteries such as battery
care/lease/charging/reuse.
Moreover, by concentrating investments where needed and
at the right time for the petrochemicals, advanced
materials, and bio sectors, it plans to establish itself
as a ‘Global Top 5 Chemical Company’ with balanced
business portfolios together with the battery business.
General
Motors Co. said Saturday it has decided to recall electric vehicles equipped
with batteries made by South Korean producer LG Chem Ltd.
due to safety concerns.
The recall covers the Bolt EV produced from 2017 to 2019, installed with LG
Chem’s batteries made from Ochang, 120 kilometers south of Seoul.
The measure came amid concerns that the batteries could cause fires when
fully charged.
The U.S. National Highway Traffic Safety Administration has
launched investigations into three fire cases from the EVs.
The U.S. automotive giant has also developed software that limits battery
charges to 90 percent of their capacity, it added. The program will be
gradually updated for automobiles, starting with North America next week.
GM Korea, the South Korean unit, said there have been no fire cases reported
from the Bolt EVs sold over the period. Nevertheless, the unit will also
cooperate with related authorities to take preemptive measures, it added.
The company, meanwhile, advised customers to change their charging settings
to either “hill top reserve” or “target change level” options, which will
limit the charging capacity to 90 percent.
Ultium Cells LLC,
a joint venture of LG Energy Solution and General Motors, today announced
a more than $2.3 billion investment to build its
second battery cell manufacturing plant in the United States. The facility will
be located in Spring Hill, Tennessee.（GMの組み立て工場がある。）
Ultium Cells will build the new plant on land
leased from GM. The new battery cell plant will create 1,300 new jobs.
Construction on the approximately 2.8 million-square-foot facility will begin
immediately, and the plant is scheduled to open in late
2023. Once operational, the facility will supply battery cells to GM’s
Spring Hill assembly plant.
“The addition of our second all-new Ultium
battery cell plant in the U.S. with our joint venture partner LG Energy Solution
is another major step in our transition to an all-electric future,” said GM
Chairman and CEO Mary Barra. “The support of the state of Tennessee was an
important factor in making this investment in Spring Hill possible and this type
of support will be critical moving forward as we continue to take steps to
transition our manufacturing footprint to support EV production.”
“This partnership with General Motors will
transform Tennessee into another key location for electric vehicle and battery
production. It will allow us to build solid and stable U.S-based supply chains
that enable everything from research, product development and production to the
procurement of raw components,” LG Energy Solution President and CEO Jonghyun
Kim said. "Importantly, I truly believe this coming together transcends a
partnership as it marks a defining moment that will reduce emissions and help to
accelerate the adoption of EVs.”
The state-of-the-art Spring Hill plant will
use the most advanced and efficient battery cell manufacturing processes. The
plant will be extremely flexible and able to adapt to ongoing advances in
technology and materials.
GM’s proprietary Ultium battery technology is
at the heart of the company’s strategy to compete for nearly every EV customer
in the marketplace, whether they are looking for affordable transportation,
luxury vehicles, work trucks, commercial trucks or high-performance machines.
Ultium batteries are unique in the industry
because the large-format, pouch-style cells can be stacked vertically or
horizontally inside the battery pack. This allows engineers to optimize battery
energy storage and layout for each vehicle design. Energy options range from 50
to 200 kilowatt hours, which could enable a GM-estimated range up to 450 miles
or more on a full charge with 0-60 mph acceleration in 3 seconds1.
GM’s future Ultium-powered EVs are designed
for Level 2 and DC fast
charging. Most will have 400-volt battery packs and up to 200 kW fast
charging capability while GM's truck platform will have 800-volt battery packs
and 350 kW fast charging capability.
With a 30-year history in the battery
business, LG Energy Solution has made consistent, large-scale investments to
accumulate enough stability, credibility and manufacturing experience to invent
its own cutting-edge technologies. The company established its first research
facility in the U.S. in the early 2000s. In 2010, the company built its first
U.S battery plant in Holland, Michigan.
Through Ultium Cells, LG Energy Solution and
GM will merge their advanced technologies and capabilities to help accelerate
automotive electrification.
General Motors has made several announcements in the last 18 months that
underscore its commitment to an all-electric, zero-emissions future, including:
GM committed more than $27
billion to EV and AV product development, including $7 billion in
2021, and plans to launch 30 EVs globally by the end of 2025, with more than
two-thirds available in North America. Cadillac, GMC, Chevrolet and Buick
will all be represented, with EVs at all price points for work, adventure,
performance and family use.
In January 2021, GM unveiled BrightDrop,
a new business that aims to electrify and improve the delivery of goods and
services by offering an ecosystem of electric first-to-last-mile products,
software and services to help empower delivery and logistics companies to
move goods more efficiently.
In October 2020, GM announced it would
invest
$2 billion in its Spring Hill, Tennessee assembly plant to begin the
transition to become the company’s third vehicle manufacturing site to
produce electric vehicles, joining
Factory ZERO in Detroit and Hamtramck, Michigan, and Orion Assembly in
Orion Township, Michigan. The all-new Cadillac LYRIQ will be the first EV
produced at GM’s Spring Hill assembly plant. Production of the Cadillac XT6
and XT5 will continue at Sp
ring Hill.
GM’s zero-emissions technology will
extend to fuel cells as the company announced it will supply
its Hydrotec fuel cell power cubes to Navistar for use in its production
model fuel cell electric vehicle.
In January 2020, GM announced it was
investing more than $2 billion in its
Factory ZERO, formerly the Detroit-Hamtramck assembly plant. Factory
ZERO will be GM’s first plant that is 100 percent devoted to electric
vehicles, and in fall 2021 will start production of the new GMC
HUMMER EV pickup.In addition, Factory ZERO will also build
the
HUMMER EV SUV and the Chevrolet Silverado electric pickup truck.
In 2019, GM announced the formation of
Ultium Cells LLC,
a joint venture with LG Energy Solution, to mass-produce battery cells
in Lordstown, Ohio, for future battery-electric vehicles. Construction of
the $2.3 billion facility is well underway.
General Motors is a global company focused on
advancing an all-electric future that is inclusive and accessible to all. At the
heart of this strategy is the Ultium battery platform, which powers everything
from mass-market to high-performance vehicles. General Motors, its subsidiaries
and its joint venture entities sell vehicles under the Chevrolet,Buick,GMC,Cadillac, Baojun
and Wuling brands. More information on
the company and its subsidiaries, including OnStar,
a global leader in vehicle safety and security services, can be found at https://www.gm.com.
LG Energy Solution is a global leading
battery maker providing the best solutions within the energy sector for a better
world. Based on our 30 years of R&D experience, we deliver the most advanced
batteries that have been infused with cutting-edge technologies to EVs, Energy
Storage Systems (ESS) and Mobility & IT applications across the world. LG Energy
Solution’s Advanced Automotive Battery leads the market with its outstanding
technologies and products. Home to the world's first EV battery lineup, we
provide the best battery solutions for EVs worldwide. For more information about
LG Energy Solution, please visit
https://www.lgensol.com.
1Actual range will vary based
on several factors, including temperature, terrain, battery age, vehicle model,
loading, use and maintenance.
LG Chem has agreed to take over
LG Electronics’ battery separator business
in a KRW525bn (US$458m) deal.
LG Chem, the parent company
of EV battery manufacturer LG Energy Solution, said the
acquisition of LG Electronics’ chemical electronic material (CEM)
subsidiary will help it consolidate its leading position in the
global lithium-ion battery industry.
The deal is between
affiliated operations within the LG Group, South Korea’s
fourth-largest conglomerate.
LG Electronics will transfer
battery separator production facilities in South Korea, Poland
and China, which together employ 800 people, to LG Chem as part
of the agreement.
Earlier this month
LG Chem announced it
would invest KRW6trn by 2025 to expand its global battery supply
chain business.
ㆍ Full-scale production of the world’s first
bio-balanced SAP
ㆍbuilding
a circular economy for waste plastics
ㆍ Promotion of renewable energy industry materials
businesses
E-Mobility centered on
battery materials
6 trillion KRW
ㆍ Development of global top-tier of anode materials
ㆍ Fast entry into the market for separator business
ㆍ More than tripled CNT production from 1,700 tons
in 21 years
ㆍ Research and development of anode materials,
cathode binders, heat-resisting adhesives, etc.
Global innovative new drugs
1 trillion KRW
ㆍ global new drug · Top 45 new drug pipelines in
Korea
ㆍ Expansion of new drug pipelines in clinical stages
such as diabetes, metabolism, anti-cancer, and
immunity
ㆍ Global clinical development & business
acceleration
The company began
construction of a new separator factory in
Gumni last December with a production capacity of 60,000
tons per year. It also has agreements in place with mining
companies to secure future supplies of raw materials.
E-Mobility centered on battery
materials
In order to become the world’s no. 1 comprehensive battery
material company, LG Chem plans to invest 6 trillion KRW and
foster the portfolio widely ranging from anode materials,
separation
membranes, cathode binders, radiant adhesives, CNT, etc.
Plans are to commence construction of the
Gumi Plant with a 60,000-ton capacity
in December for the anode material business with the
goal of fostering the company into a global leader.
Through this, the anode
production capacity of LG Chem will increase by roughly
seven-fold from 40,000 tons in 2020 to 260,000 tons by 2026.
A JV is being prepared with a mining
company for the stable supply of metals that will be
used as the raw materials for anode materials. LG Chem will
actively pursue cooperation in various ways
with companies possessing mining, smelting and refining
technologies to strengthen its metal sourcing
competitiveness.
For the separation membrane business,
LG Chem is reviewing M&As and JVs with companies having
marketability such as technologies and clients to quickly
enhance business capacities, while also
planning to build a global production base as soon as
possible.
For products such as anode materials, cathode binders, and
radiant adhesives, LG Chem plans to preemptively focus R&D
resources to differentiate its technologies and acquire
market leadership.
This is because in the battery materials market that is
expected to grow quickly from 39 trillion KRW in 2021 to 100
trillion KRW by 2026, it is anticipated that demands for
material innovation will
strengthen for the sake of improving performance and cutting
costs.
*Binder: Fixes active materials on copper laminates when
charging and discharging are repeated
*Radiant adhesive: Material that connects EV battery modules
to emit heat generated in the battery cell to the outside,
while also fixing the battery cell against external impact
and vibration
In order to keep up with the market forecast for battery
materials that are growing at a rapid pace, the company
plans to expand the CNT production scale of the
Petrochemicals Company from 1,700 tons in 2021 to triple or
more by 2025. LG Chem expanded its production capacity by
completing the CNT Plant 2 capable of producing 1,200 tons
per year to target the anode conductive additive
market for lithium-ion batteries in April, while
continuously expanding production capacities such as making
preparations to start construction of Plant 3 within this
year.
CNT (Carbon Nanotube): A new material having the same
electric and heat conductivity equivalent to copper and
diamonds, and its intensity is 100 times that of steel.
*Conductive Additive: Material that helps with the flow of
electricity and electrons and it is used as an additive
throughout lithium-ion batteries. In particular, it enhances
conductivity of lithium-ions inside the
anode material that is composed of active materials such as
nickel, cobalt, and manganese, thereby improving
charging/discharging efficiency
ーーーーーーーーーーーーーーーーーーーーーーーーー
2021.07.14
LG
Chem To Invest 10 Trillion KRW In New Growth Engines Such As
Eco-friendly Materials, Battery Materials By 2025
LG Chem Chief Executive Officer Hak Cheol
Shin holds press conference
■
Declaration to switch business portfolio for sustainable growth
- Petrochemicals: To lead sustainable
business focusing on eco-friendly materials such as full-scaled
production of Bio SAP
- Advanced Materials:
To grow into the world’s largest comprehensive
battery materials company having all core battery materials such
as separation membranes, cathode binders, and become no. 1 in the world
for anodes
- Life Sciences: To become a global
pharmaceutical company with a minimum of 2 global innovative new drugs
by 2030
■ Chief Executive Officer Hak Cheol Shin,
- “Over 30 projects including M&As, joint ventures (JV), strategic
investments, etc. to make a paradigm shift to an ESG-based business
portfolio are being reviewed”
- “This will be the most revolutionary change since the
establishment of the company that will upgrade the value and
sustainability of LG Chem,
and tangible achievements will become available from the second half
of this year”
Chief Executive Officer Hak Cheol Shin announced investment plans worth
10 trillion KRW in ESG-based sustainable growth sectors.
Chief Executive Officer Shin stated LG Chem selected ▲eco-friendly sustainable business
▲e-mobility centering on battery materials ▲global innovative new drugs
as the three major new growth engines, declaring that 10 trillion KRW
will be invested in these fields by '25 at a press conference held
online on the 14th.
Chief Executive Officer Shin said, “The standard for measuring
competitiveness in the business world should be based on sustainability
for revenue and operating profits, and this should be reflected in all
business processes, strategy, and investment, etc.”
He added, “From this perspective, our business portfolio will be
overhauled toward being based on ESG, while pursuing sustainable
growth.”
■ New growth engine triangle - eco-friendly materials, battery
materials, global innovative new drugs
LG Chem selected three new growth engines that will be in accordance
with ESG, while maximizing the growth potential of existing businesses.
① Sustainability
business centered on eco-friendly materials
Plans are to invest 3 trillion KRW in sustainable businesses such as bio
materials, recycled materials, and renewable energy industry materials
to build a platform for the future growth of the
Petrochemicals Company.
LG Chem plans to begin full-scale production of the world’s first
bio-balanced SAP product that received ISCC Plus certification from this
month, and supply them to global clients such as the US and Europe.
*SAP (Super Absorbent Polymer): Products manufactured with highly
absorbent resins that can absorb water 200 times of its own weight
commonly used for hygienic products including diapers
Bio-balanced SAP is an eco-friendly product manufactured using
plant-based bio renewable materials such as waste cooking oil from Neste
of Finland and fossil fuels together with base materials.
ISCC Plus is the most authoritative international certification in the
world related to eco-friendly bio products. LG Chem acquired ISSC Plus
certification for the entire value chain ranging from raw
materials to production, purchasing, and sales for a total of 9
bio-balanced products including SAP, PO, PC, etc.
*PO(Polyolefin): Raw material of plastic used in daily life such as PO
(Polyolefin): PE (Polyethylene), PP (Polypropylene), etc.
*PC (Polycarbonate): Products with outstanding impact resistance and
transparency, thus being used for interior and exterior materials for
automobiles, household items, etc.
Biodegradable polymer PBAT is preparing to actively introduce
technologies from outside companies and aiming to commence construction
of production facilities within the year for rapid market
entry and to enhance its capacities.
*PBAT (Polybutylene Adipate-co-Terephthalate): Product used in
agricultural and disposable films, etc. that quickly decomposes in
nature through reactions with oxygen, heat, light and enzymes
The bio plastic market is expected to rapidly grow from 12 trillion KRW
in 2020 to 31 trillion KRW by 2025. Therefore, JVs with domestic and
foreign raw material companies are being actively pursued for stable
sourcing of eco-friendly raw materials like PLA made with plant-based
ingredients such as corn and bio naphtha.
*PLA (Poly Lactic Acid): Resin normally used for disposable packaging
material that naturally decomposes as it is made with plant-based
ingredients such as corn
It will also focus on enhancing its mechanical and chemical recycling
capacities to build a circular economy for waste plastics. For
mechanical recycling, plans are to strengthen the existing market
power of PC and ABS, while expanding the product portfolio to include PO
and PVC, while increasing related product revenue by an annual average
of more than 40% by 2025. For chemical recycling with high likeliness
for long-term growth, the strategy entails finding and preoccupying
platform technologies with good potential.
*ABS (Acrylonitrile Butadiene Styrene): High value-added synthetic resin
with outstanding heat resistance and impact resistance, thus being used
as interior and exterior materials for automobiles,
household appliances, and IT products
*PVC (Polyvinyl Chloride): Widely used thermoplastic applied in
construction materials such as pipes and window frames, as well as
household goods
Meanwhile, LG Chem is also establishing an eco-platform for 100%
circulation of plastic resources for cosmetic product containers
together with the start-up, innerbottle, to provide eco-friendly
packaging solutions, while also engaging in joint research to apply
recycled plastic materials such as PCR (Post Consumer Recycle) ABS, etc.
in cosmetic product containers.
Furthermore, it plans to actively look for new business opportunities in
the renewable energy industry materials market such as POE/EVA for solar
power panels. As the generation cost for renewable
energy such as solar power and wind power are becoming less expensive
than fossil fuels in the US and China, renewable energy markets are
growing rapidly.
*POE (Polyolefin Elastomer): LG Chem POE is a copolymer of ethylene
using a unique metallocene catalyst and octene or ethylene and butene.
This product is featured by reinforced impact resistance,
high elasticity, and low heat sealing temperature
*EVA (Ethylene Vinyl Acetate): Copolymer of ethylene and VA. It is
characterized by elasticity, thermal bonding temperature, durability,
penetrating power, etc. that change depending on the VA content, and is
used in various fields such as solar power sheets, shoe soles, etc.
② E-Mobility centered on battery materials
In order to become the world’s no. 1 comprehensive battery material
company, LG Chem plans to invest 6 trillion KRW and foster the portfolio
widely ranging from anode materials, separation
membranes, cathode binders, radiant adhesives, CNT, etc.
Plans are to commence construction of the Gumi
Plant with a 60,000-ton capacity in December for the anode
material business with the goal of fostering the company into a global
leader.
Through this, the anode production capacity
of LG Chem will increase by roughly seven-fold from 40,000 tons in 2020
to 260,000 tons by 2026.
A JV is being prepared with a mining company for the stable supply of
metals that will be used as the raw materials for anode materials. LG
Chem will actively pursue cooperation in various ways
with companies possessing mining, smelting and refining technologies to
strengthen its metal sourcing competitiveness.
For the separation membrane business, LG Chem is reviewing M&As and JVs
with companies having marketability such as technologies and clients to
quickly enhance business capacities, while also
planning to build a global production base as soon as possible.
For products such as anode materials, cathode binders, and radiant
adhesives, LG Chem plans to preemptively focus R&D resources to
differentiate its technologies and acquire market leadership.
This is because in the battery materials market that is expected to grow
quickly from 39 trillion KRW in 2021 to 100 trillion KRW by 2026, it is
anticipated that demands for material innovation will
strengthen for the sake of improving performance and cutting costs.
*Binder: Fixes active materials on copper laminates when charging and
discharging are repeated
*Radiant adhesive: Material that connects EV battery modules to emit
heat generated in the battery cell to the outside, while also fixing the
battery cell against external impact and vibration
In order to keep up with the market forecast for battery materials that
are growing at a rapid pace, the company plans to expand the CNT
production scale of the Petrochemicals Company from 1,700 tons in 2021
to triple or more by 2025. LG Chem expanded its production capacity by
completing the CNT Plant 2 capable of producing 1,200 tons per year to
target the anode conductive additive
market for lithium-ion batteries in April, while continuously expanding
production capacities such as making preparations to start construction
of Plant 3 within this year.
CNT (Carbon Nanotube): A new material having the same electric and heat
conductivity equivalent to copper and diamonds, and its intensity is 100
times that of steel.
*Conductive Additive: Material that helps with the flow of electricity
and electrons and it is used as an additive throughout lithium-ion
batteries. In particular, it enhances conductivity of lithium-ions
inside the
anode material that is composed of active materials such as nickel,
cobalt, and manganese, thereby improving charging/discharging efficiency
③ Global innovative new drugs
The Life Sciences Company will invest more than 1
trillion KRW in the new drug business alone with the goal of becoming a
global new drug company holding two or more new innovative drugs by 2030
to enter advanced markets such as the US and Europe.
The Life Sciences Company has accelerated efforts to develop new drugs
by expanding the new drug pipelines from 34 in 2019 to 45 as of now in
2021 and focusing on R&D investment.
In particular, the Life Sciences Company is concentrating its
development capacities in the four strategic disease groups of diabetes,
metabolism, anti-cancer, and immunity, which has strengths in.
Plans are to expand new drug pipelines that entered the clinical
development stage from 11 in 2021 to 17 by 2025.
For this, it is actively reviewing various open innovation strategies
including M&As and the establishment of JVs, while also establishing a
research firm in the US and continuously procuring
personnel with expertise in clinical studies/licensing to further
strengthen its global clinical development capacities.
Chief Executive Officer Hak Cheol Shin commented, “It is essential to
switch the business portfolio based on ESG to respond to the market and
clients that are rapidly changing.”
He added, “There are currently over 30 projects including M&As, joint
ventures (JV), strategic investments, etc. under review to cooperate
with external companies having the relevant technologies and clients.”
Chief Executive Officer Shin also stated, “As the most revolutionary
change since the establishment of the company that will upgrade the
value and sustainability of LG Chem has already begun,
tangible achievements will become available from the second half of this
year.”
ㆍ Full-scale production of the world’s first bio-balanced SAP
ㆍbuilding
a circular economy for waste plastics
ㆍ Promotion of renewable energy industry materials businesses
E-Mobility centered on
battery materials
6 trillion KRW
ㆍ Development of global top-tier of anode materials
ㆍ Fast entry into the market for separator business
ㆍ More than tripled CNT production from 1,700 tons in 21 years
ㆍ Research and development of anode materials, cathode binders,
heat-resisting adhesives, etc.
Global innovative new drugs
1 trillion KRW
ㆍ global new drug · Top 45 new drug pipelines in Korea
ㆍ Expansion of new drug pipelines in clinical stages such as
diabetes, metabolism, anti-cancer, and immunity
ㆍ Global clinical development & business acceleration
LG Energy Solution inks deal with Australian mining company for nickel and
cobalt
Aria Alamalhodaei@breadfrom / 6:08 AM GMT+9•August 17, 2021
36123590822 d29a6bdf05 k
2021/8/17 LG Energy Solution inks deal with
Australian mining company for nickel and cobalt
South Korea’s LG Energy Solution has entered into a
six-year agreement with an Australian mining company for cobalt and nickel,
securing a stable supply of key minerals to make electric vehicle
batteries.
LG Energy, a subsidiary of LG Chem, will purchase 71,000
dry metric tons of nickel and 7,000 dry metric tons
of cobalt from Australian Mines Limited
starting from the end of 2024. That’s enough raw material to make batteries
for 1.3 million EVs with a driving range of over 310 miles per charge.
“Securing key raw materials and a responsible battery supply chain has become a
critical element in gaining a greater control within the industry, as the demand
for electric vehicles worldwide heightened in recent years,” LG Energy Solution
CEO Jong-hyun Kim said in a statement.
The materials will be sourced from Australian Mines’ $1.5 billion Sconi Project
based in Queensland, which is currently under development. The site will use a
“dry stacking method” to store filtered tailings, an alternative and more
eco-friendly way to manage waste from a mining site. Instead of dumping tailings
into local water sources or burying them in underground quarries, dry stacking
removes the water from the waste, leaving a sand-like substance that can be
securely stored in management facilities.
“Although more costly compared to the conventional method due to construction
and maintenance expenses, the dry stacking method is deemed an environmentally
friendly way to extract raw materials,” LG Energy said in a statement.
The sole condition to the agreement is that Australian Mines secure financing
for the construction of the project before the end of June next year. If
secured, the agreement would account for all of the anticipated output of the
site.
The two companies have the option to extend the agreement by another five years
by mutual agreement.
LG Energy is a subsidiary of LG Chem, one of the world’s largest producers of
batteries and battery materials. Last month, the company said it had earmarked
₩6 trillion ($5.2 billion) in its battery businesses, specifically the
production of anode materials, separation membranes and cathode binders. Earlier
this summer, it also entered into an agreement with Queensland Pacific Metals
valued at ₩12 billion ($10.3 million), for 7,000 tons of nickel and 700 tons of
cobalt per year over a 10-year period.
LG Chem counts Volkswagen, General Motors and Tesla amongst its customers. It
said it anticipates the global battery market only expanding in the coming
years, from ₩39 trillion ($34 billion) in 2021 to ₩100 trillion ($87 billion) by
2026.
It isn’t the only major player vying to secure sources of raw materials. In a
move to obtain its own battery source, Tesla inked a deal with commodity
production giant BHP in July for nickel from its mines in Western Australian.
OEMs are also partnering with battery makers to develop batteries — LG Chem
included, as is the case with the joint venture between the conglomerate and
General Motors, Ultium Cells.
2021.09.14
LG Chem to produce
100% Bioplastic with a Global Major Grain Processing Company
■ On the 13th, Heads of Agreement (HOA)
for establishment of bioplastic PLA joint venture
signed with Archer-Daniels-Midland Company (ADM),
one of the four major grain processing companies in the world.
□ Construction of a production plant with an annual capacity of
75,000 tons in the US by 2025
□ Plans to establish an integrated production system for LA (Lactic Acid)
which is a raw material as well as PLA
■ Expected synergies between the two companies in the sustainability sector,
including securing eco-friendly raw materials and expanding business areas
□ LG Chem: Internalization of raw materials necessary for PLA production and
scale-up of the bio-material business
□ ADM: Expansion of the business portfolio into the biochemical sector
■ Further plans to strengthen cooperation in R&D of biomaterials that can
applied in the sustainability sector
■ Chief Executive Officer Hak Cheol Shin,
“This joint venture is the start of a new journey to lead the transition to
a sustainable business structure for the benefit of the environment and
society”
“As a leading company for sustainability, we will actively seek new ways to
contribute to carbon-neutral growth.”
LG Chem and Archer Daniels Midland (ADM) in the US, one of the world's four
major grain processing companies, will set up a joint factory for the
purpose of commercializing corn-based bioplastics.
LG Chem announced that it had signed a Heads of Agreement (HOA) for the
establishment of a Lactic Acid (LA：乳酸) and Poly Lactic
Acid (PLA) joint venture on September 13th (local time) at the ADM
headquarters in Chicago, Illinois, in the presence of executives from both
companies, including ADM CEO Juan Luciano and Hak Cheol Shin, CEO of LG
Chem.
The two companies will sign the definitive agreement in the first quarter of
next year and plan to complete construction of the PLA
production plant with an annual capacity of 75,000 tons and
LA production plant for this purpose in the
U.S. by 2025.
LG Chem is the first Korean company to build a PLA plant in the US with
integrated production from raw materials to end products.
PLA is a representative biodegradable plastic
made using the raw material of LA that is produced by fermenting and
refining glucose extracted from corn. Produced from
100% bio-materials, PLA is mainly used for food
packaging containers and tableware, comprising an eco-friendly
material that is naturally decomposed in several months by microorganisms
under certain conditions.
According to market research institutes, as the demand for biodegradable
plastic is increasing caused by the strengthening of regulations on the use
of disposable products worldwide, the global bioplastic market is projected
to grow by an annual average of 23% from a scale of 12 trillion won in 2021
to 34 trillion won in 2026.
ADM is a global grain processing company that operates crop procurement
facilities in 200 countries around the world.
The company also has technical advantage in the production of glucose as the
most important raw material for bio-based chemicals, as well as fermentation
technology using glucose.
The establishment of the joint venture will allow LG Chem to integrate
renewable biomaterials into the development of its various high-added-value
products based on vertical integration, and secure the production capacity
for high-purity lactic acid at a commercial scale, thereby securing a stable
supply of raw materials necessary for PLA production.
LG Chem plans to actively penetrate into the bioplastic market based on its
PLA production capacity.
In particular, it plans to accelerate the commercialization of its
biodegradable plastic as a potential contribution to the response to climate
change and the resolution of environmental issues such as plastic waste as
part of its sustainability strategy.
Through this agreement, the two companies also agreed to actively cooperate
in the joint research and development of biomaterials that can be applied in
the eco-friendly and sustainability sector in the future.
Back in 2019, LG Chem signed a joint development agreement (JDA) with ADM to
secure mass production technology for eco-friendly bio-acrylic acid. This
initial cooperation laid foundations for the current establishment of the
PLA joint plant.
*Bio-acrylic acid is mainly used to produce eco-friendly super absorbent
polymer, a raw material for diapers and various hygiene products, based on
advanced grain fermentation technology and advanced catalyst manufacturing
technology.
ADM CEO Juan Luciano remarked, “Our cooperation with LG Chem will create a
new opportunity for growth in solutions based on bio-based materials and the
enhancement of value for our customers.”
Meanwhile, LG Chem CEO Hak Cheol Shin stated, “The establishment of a joint
venture with AMD will be the start of a new journey that goes beyond simple
cooperation to lead the transition to a sustainable business structure for
the benefit of the environment and society.”
He also added, “We will continue to actively seek out new ways to contribute
to carbon-neutral growth as a leader for sustainability.”
2021.09.24
LG Chem sells OCA business on
panel migration to OLED
LG Chem Ltd. has sold off
its optically clear adhesive (OCA 光学透明粘着フィルム) business to a
Chinese investment company as part of its plan to exit the
LCD market amid intensifying competition from cheap Chinese
products.
The Korean chemical manufacturer recently sold its OCA
business to Genzon Investment Group
Co. 正中集団 for about 60 billion won ($51 million),
according to industry sources on Thursday. OCA is an
optically transparent adhesive film used on display devices
and touch screen panels to bind optical materials to a
primary sensor unit.
On Friday, LG Chem shares ended 0.13 percent higher at
761,000 won in Seoul.
The company acquired the OCA business from its affiliate LX
Hausys Ltd (formerly LG Hausys) in 2016 at 80.5 billion won.
OCA division that generated 200 billion won in annual sales
at heyday plunged due to fierce competition from smaller
Chinese rivals, said an industry expert.
The OCA no longer is of service to LG Display since it has
migrated to OLED as its mainstay panel.
In line with the panel
migration, LG Chem has also been moving away from materials
serving LCD since 2019. The chemical company sold off its
LCD color filter light-emitting
material business, including manufacturing facilities
in Korea and intellectual properties, to a Chinese company
for 58 billion won in February.
It also decided to fold glass
substrates business in March after failing to find a
buyer.
LG Chem is focusing its
resources on growing electric vehicle battery and OLED
materials businesses.
The company in July announced eco-friendly, battery
materials and life science businesses as three areas for new
growth drivers. It plans to invest 10 trillion won in the
three sectors by 2025, with 6 trillion won to be spent for
separator and other key battery materials.
Nov 18, 2021
GS
Caltex, LG Chem to co-work on mass production of eco-friendly raw
materials
Energy company GS Caltex and leading
chemical firm LG Chem are jointly developing technology to mass produce
eco-friendly raw materials, the firms announced Thursday.
The top officials of the two companies met at LG Science Park in Seoul
to sign a joint development agreement aimed at developing and mass
producing a biodegradable plastic material called
3HP (Hydroxypropionic acid).
3HP is an eco-friendly substance produced through
microbial fermentation of glucose and amorphous glycerol.
It is also evaluated as a next generation platform chemical that can not
only be used to make bio-degradable plastic
but also diverse materials such as super absorbent
polymers and coating material used to make diapers.
LG Chem possesses world-leading 3HP fermentation
technology and GS Caltex has advanced
processing facilities.
The joint agreement comes as GS Caltex and LG Chem found common interest
in commercializing 3HP.
The two companies plan to jump into the bio degradable material and bio
plastic market by mass producing 3HP by 2023.
Market watchers say the global bioplastic market is to see an annual
average growth of 23 percent, jumping up to 34 trillion won ($28.79b) in
2026 from 12 trillion won in 2021.
“The two companies, through cooperation in the development of
eco-friendly raw materials, will strengthen ESG capabilities by
contributing to the net economy and carbon reduction while creating
economic value through high value-added products,“ said GS Caltex
President Huh Se-hong.
LG Chem CEO Shin Hak-cheol said “We will lead future technologies that
can protect the environment and society by focusing on research and
development of eco-friendly materials.”
Dec. 06, 2021
LG Chem and Cohen & Company get
tax credits to help expand in Ravenna, Cleveland
The state of Ohio on Monday
announced just over $1 million in tax credits that could bring 133
jobs to Northeast Ohio.
Cohen & Company and LG Chem America
Inc. were two of 10 projects that received incentives from the Ohio
Tax Credit Authority. A total of $4,710,000 in credits are supposed
to create $296 million in investments and 946 new jobs across the
state, according to a news release from Gov. Mike DeWine’s office.
ーーー
Oct 12, 2021
LG Chem
Slates Tech Centers for US and Europe, ABS Plant in Ohio
South Korea’s LG Chem is committing
significant resources to the European and North American markets with a
focus on automotive materials, packaging films, and construction and
decoration materials.
In North America, investments are to
be made in an ABS compounding plant in Ohio
with annual capacity of 30,000 tonnes/year
and the American Tech Center, also in Ohio.
A European Tech Center will be set up in Frankfurt, Germany. Both
three-level facilities span floor areas of around 82,000 square feet.
LG Chem aims to have the two
tech centers and compounding plant up and running by the end of 2023,
with investments of $100 million for the former and $50 million for the
latter. Commenting on the selection of Ohio for the tech center and ABS
plant, LG Chem noted its convenience in terms of logistics and
transportation, and its proximity to LG Chem’s key ABS customers in the
automotive and building and construction sectors. Kug Lae Noh, President
of LG Chem’s Petrochemicals Co., stated: “Tech centers will strengthen
customer responsiveness through customized technical support optimized
to the local market and play a key role in making LG Chem’s strategic
products lead global markets. Starting from the customer's pain point,
we will provide [them with] differentiated insights, and seek various
ways to expand the global business based on this.”
The American
and European Tech Centers each will have various pilot facilities for
customer-tailored technical support. In addition, a total of 70 R&D
personnel, including application technology teams for extrusion and
injection molding, and organizations dedicated to each major strategic
product, will be stationed to provide technical support for customers.
LG Chem already operates similar tech centers in Osan, South Korea, and
in southern China. The company is currently constructing a tech center
in northern China, which is expected to commence operations in 2022.
LG Chem also noted a lack of local
capacity for ABS compounds in North America, despite there being a high
preference for local companies and products. In particular, the demand
for high-value-add heat- and weather-resistant ABS is continuously
increasing due to the development of the automotive, construction, and
decoration materials industries.
LG Chem also plans to
investigate constructing an ABS polymerization plant to respond
to North American customers, who account for 10% of global demand.
LG Energy Solution Plans to Raise Over $9
Billion in South Korean IPO
LG Energy Solution is seeking to raise
over $9 billion via an initial public offering in January in South Korea
to expand its business amid growing demand for electric-vehicle
batteries.
The battery affiliate of South Korea's
LG Chem Ltd. plans to raise at least 10.858 trillion won ($9.20 billion)
by listing its shares, LG Chem said in a regulatory filing on Tuesday.
LG Energy Solution is selling 34 million
new shares at between KRW257,000 and KRW300,000 each, and 8.5 million
existing shares at the same price range, the filing showed.
The price range estimates the value of
the South Korean EV battery supplier for Tesla Inc., General Motors Co.
and Hyundai Motor Co. at KRW60 trillion to KRW70 trillion.
LG Chem said LG Energy Solution plans to
use the proceeds for facility investments, working capital and stake
purchases.
IPO managers will take subscription
orders Jan. 18-19 before the company lists in January. Morgan Stanley
International and KB Securities are advising on the planned share sale.
Dec 15, 2021
LG Chem, LG Energy Solution acquire 2.6%
stake in Canada’s Li-Cycle Holdings
LG Group’s chemicals and battery units, LG
Chem and LG Energy Solution, said Wednesday that they had acquired a 2.6 percent
stake in Canadian battery recycling company Li-Cycle
Holdings by investing 30 billion won ($25.3 million) each.
Li-Cycle, based in Toronto, operates North America’s largest lithium-ion battery
recycling facility. The firm recycles waste from the EV battery manufacturing
process and recovers battery metals for reuse.
The Canadian firm recently issued new shares as part of its processing expansion
of its Rochester, New York, facility to better meet the growing demands from
carmakers, and the LG duo made an equity investment worth a combined 60 billion
won to secure a footing in the burgeoning market.
The two Korean firms also signed a separate deal with Li-Cycle to be supplied
with 20,000 tons of recycled nickel for 10 years from 2023 -- an amount that can
be used to produce 80-kilowatt-hour batteries for some 300,000 EVs.
With the latest deal, the two firms said they will be able to respond more
preemptively to tougher ESG-related regulations in the US and other advanced
markets.
LG Energy Solution, in particular, said it will be creating its own closed-loop
battery ecosystem by recycling and reusing battery waste at all its production
facilities by 2025.
Dec 29, 2021
LG Chem to invest W475b for cathode
materials plant in S. Korea
LG Chem Ltd., South Korea's leading electric
vehicle battery maker, will invest 475.4 billion won ($400
million) in cathode materials plant in Gumi,
260 kilometers south of Seoul, the trade ministry said
Wednesday.
LG Chem will set up LG Battery Core Material to produce
60,000 tons a year of cathode materials and
create 187 jobs for three years, the Ministry of Trade, Industry and Energy
said in a statement.
The company plans to begin construction of the plant in Gumi, 260 kilometers
south of Seoul, next month with an aim to produce the material from 2024, an
LG Chem spokesman said.
LG Chem currently has two
domestic cathode materials plants, in Cheongju and
Iksan Korea, and one in Wuxi, China. The
three plants have a combined output capacity of 80,000
tons a year of cathode materials.
Cathode materials are the main component of lithium ion batteries used in
electric vehicles, handsets and other electronic gadgets.
Cue Biopharma entered into a strategic
collaboration with LG Chem Life Sciences in November 2018.
Under the collaboration, LGC has an
exclusive right to develop and commercialize CUE-101, CUE-102 and
CUE-103 for Asia, while Cue Biopharma retains the right to develop and
commercialize CUE-101, CUE-102 and CUE-103 for the United States and all
other countries outside of Asia.
The collaboration agreement also grants a
worldwide option to LGC to develop Immuno-STATs against a fourth
oncology target, with Cue Biopharma retaining the right to co-develop
and co-commercialize drugs from the fourth program. Cue Biopharma will
engineer the selected Immuno-STATs, while LG Chem will leverage its
experience in biologics manufacturing to establish a quality chemistry,
manufacturing and controls (CMC) process for development and
commercialization of the selected candidates.
Cue Biopharma, Inc., a
clinical-stage biopharmaceutical company engineering a novel
class of injectable biologics to selectively engage and modulate
targeted T cells directly within the patient’s body, along with
LG Chem Life Sciences, announced today that a key milestone in
the selection of a clinical product candidate has been reached
in their collaboration for CUE-102,
an Immuno-STAT™ biologic, jointly developed to selectively
target WT1-expressing cancers. The milestone represents
significant progress for the CUE-102 program and an important
achievement in generating promising preclinical activity and
data to be shared with the FDA as part of an investigational New
Drug (IND) filing that is planned for the first quarter of 2022.
Under the terms of the collaboration agreement, Cue Biopharma
will receive a $3 million milestone payment from LG Chem Life
Sciences, the life sciences division of LG Chem Ltd.
“We are highly encouraged with
the progress made in our collaboration with LG Chem, our partner
and collaborator for CUE-101 and CUE-102 in certain Asia
countries, and pleased to be advancing CUE-102 for a planned IND
submission this year,” said Daniel Passeri, chief executive
officer of Cue Biopharma. “This milestone reflects ongoing
progress for CUE-102, our second program from the IL-2 based
CUE-100 series, and we believe provides a significant
opportunity to address a high unmet need in a wide range of
solid tumors and hematologic WT1-positive malignancies. The
CUE-102 preclinical data continues to support and bolster the
versatility and modularity of our CUE-100 series biologics and
the Immuno-STAT platform, and we look forward to executing on
our goal to advance this drug candidate into the clinic for
patients in need.”
Dr. Jeewoong Son, president
of LG Chem Life Sciences added, “This significant milestone for
CUE-102 underscores the spirit of the partnership and
collaboration for advancing our shared vision with Cue Biopharma.
We are very pleased and encouraged by the clinical data reported
from the CUE-101 program and believe these data support the
potential for CUE-102 to provide a significant therapeutic
advancement for patients with WT1-expressing cancers.”
Cue Biopharma presented
preclinical data on CUE-102 and interim clinical data on
CUE-101, its lead oncology asset, at the Society for
Immunotherapy of Cancer’s (SITC) 36th Annual Meeting in November
2021.
About Immuno-STAT
The company’s Immuno-STAT™ (Selective Targeting and
Alteration of T cells) platform biologics are designed for
targeted modulation of disease-associated T cells in the areas
of immuno-oncology and autoimmune disease. Each of our biologic
drugs is designed using our proprietary scaffold comprising: 1)
a peptide-major histocompatibility complex (pMHC) to provide
selectivity through interaction with the T cell receptor (TCR),
and 2) a unique co-stimulatory signaling molecule to modulate
the activity of the target T cells.
The simultaneous engagement
of co-regulatory molecules and pMHC binding mimics the signals
delivered by antigen presenting cells (APCs) to T cells during a
natural immune response. This design enables Immuno-STAT
biologics to engage with the T cell population of interest,
resulting in selective T cell modulation. Because our drug
candidates are delivered directly in the patient’s body (in
vivo), they are fundamentally different from other T cell
therapeutic approaches that require the patients’ T cells to be
extracted, modified outside the body (ex vivo) and
reinfused.
About the CUE-100 Series
The CUE-100 series consists of Fc-fusion biologics that
incorporate peptide-major histocompatibility complex (pMHC)
molecules along with rationally engineered interleukin 2 (IL-2)
molecules. These singular biologics are anticipated to
selectively target, activate and expand a robust repertoire of
tumor-specific T cells directly in the patient’s body. The
binding affinity of IL-2 for its receptor has been deliberately
attenuated to achieve preferential selective activation of
tumor-specific effector T cells while reducing potential for
effects on regulatory T cells (Tregs) or broad systemic
activation, potentially mitigating the dose-limiting toxicities
associated with current IL-2-based therapies.
About CUE-102
Leveraging the Immuno-STAT™ (Selective Targeting and
Alteration of T cells) platform of targeted interleukin 2
(IL-2) therapies and the ongoing development of CUE-101, CUE-102
is being developed as a novel therapeutic fusion protein to
selectively activate tumor antigen-specific T cells to treat
Wilms’ Tumor 1 (WT1)-expressing cancers. CUE-102 consists of two
human leukocyte antigen (HLA) molecules presenting a WT1
peptide, four affinity-attenuated IL-2 molecules, and an
effector attenuated human immunoglobulin G (IgG1) Fc domain.
About LG Chem Life
Sciences
LG Chem Life Sciences is a business division within LG Chem,
engaged in the development, manufacturing, as well as
commercializing pharmaceutical products globally. LG Chem Life
Sciences seeks to expand and make global presence by focusing on
key core therapeutic areas of Immunology, Oncology, and
Metabolic Diseases (specifically, diabetes and related metabolic
diseases). To achieve such, its strategy is to actively pursue
global collaboration encompassing from asset-centric to
strategic investment and collaboration. LG Chem Life Sciences
Innovation Center:
innovation.lgchem.com
About Cue Biopharma
Cue Biopharma, a clinical-stage biopharmaceutical company, is
engineering a novel class of injectable biologics to selectively
engage and modulate targeted T cells directly within the
patient’s body to transform the treatment of cancer, infectious
disease and autoimmune disease. The company’s proprietary Immuno-STAT™
(Selective Targeting and Alteration of T cells)
platform, is designed to harness the body’s intrinsic immune
system without the need for ex vivo manipulation.
Headquartered in Cambridge,
Massachusetts, the company is led by an experienced management
team and independent Board of Directors with deep expertise in
immunology and immuno-oncology as well as the design and
clinical development of protein biologics.
2022/3/21 EU approves Polish state aid for LG Chem's expansion
The European Commission has found that
Poland's EUR 95 million measure in favour of LG Chem is in line with EU
State aid rules.
It was back in July 2019, that Poland
notified the European Commission of its plans to grant
EUR 95 million to support the expansion of
LG Chem's plant. In August 2020, the Commission opened an in-depth
investigation to assess whether the measure was compatible with its
guidelines. The investigation has now been completed and the Commission
has approved the grant.
The investment aid will support the
expansion of LG Chem's battery cell production facility for electric
vehicles in the Polish Dolnośląskie region.
"Our in-depth investigation has
confirmed that Poland's €95 million public support to expand the
production capacity of an LG Chem's electric vehicles battery plant is
in line with our State aid rules. The aid
will contribute to job creation and to the
economic development of a disadvantaged region,
without unduly distorting competition,"
says Margrethe Vestager, Executive Vice-President in charge of
competition policy, in a press release from the Commission.
Back in 2017, LG Chem decided to
invest EUR 1 billion to expand its production capacity of lithium-ion
cells, battery modules and battery packs for electric vehicles in its
existing plant in the Polish Dolnośląskie region. The new plant is
expected to supply batteries for more than 295,000 EV each year. And as
stated earlier, during the summer of 2019, Poland notified the
Commission of its plans to grant EUR 95 million to support this
expansion - which will now move forward following the Commission's
approval.
2022.06.02
LG Chem and Korea Zinc
Subsidiary ‘KEMCO’ Established Joint Venture for Recycling-Precursors
■ On 31st, Chief Executive Officer Hak Cheol Shin and KEMCO
President Choi Nae-hyun Enters Joint Venture Agreement
■ Establish precursor plant by investing over 200 billion KRW
by 2024 at Onsan Industrial Complex
□ Shares to be divided by KEMCO at 51% and 49% by LG Chem
□ Procure precursor production capacity upwards of 20,000
tons per year by applying recycled metals, etc.
■ Construct stable supply system for core raw ingredients and
materials
□ LG Chem: Procure domestic precursor supply chain using
stable nickel sulfate supply and recycling
□ KEMCO: Procure reliable client in the domestic market and
expand the battery materials business
■ Chief Executive Officer Hak Cheol Shin,
“Very meaningful in that our platform is becoming
strengthened to become the world’s best comprehensive battery materials
company”
“We will achieve ceaseless growth in the eco-friendly battery
materials business through bold investments and collaboration”
LG Chem will establish a recycling and
precursor joint venture with KEMCO, a subsidiary of Korea Zinc Co.,
Ltd., to strengthen its battery material value chain.
* Precursor: Raw material for cathodes manufactured by
combining nickel, cobalt, manganese, aluminum, etc., and accounts for
approximately 70% of cathode material costs
LG Chem announced on the 31st that it entered a contract for
the establishment of a joint venture with KEMCO at the head office of Korea
Zinc in Nonhyeon-dong, Seoul. At this ceremony, key figures such as LG Chem
Chief Executive Officer Hak Cheol Shin, Korea Zinc Co-Vice Chairman/Co-CEO
Choi Yun-Beom, and KEMCO President & CEO Choi James Soung were present.
The joint venture will divide shares into
KEMCO at 51% and LG Chem at 49%. It will be constructed as an
exclusive line for NCMA (Nickel, Cobalt, Manganese,
Aluminum) precursors that will be used for next-generation EV
batteries, which LG Chem is focusing on in the Onsan Industrial Complex in
Ulsan. Plans are to invest more than 200 billion KRW by 2024 to procure
over 20,000 tons of precursor production capacities annually such as
applying recycled materials, etc. Construction is slated to begin in July of
this year and mass production is expected to begin from Q2 of 2024 and will
be supplied to the LG Chem Cheongju Cathode Materials Plant.
The joint venture will produce precursors using not only
metals produced and supplied by KEMCO, but also recycled metals extracted
from waste scrap and waste batteries.
In particular, the recycling process of the joint venture
combines dry and wet processes to maximize metal
recovery rate compared to existing processes. By adopting an
eco-friendly process that recycles waste water in the extraction process and
that can minimize discharge of harmful substances, plans are to preemptively
respond to global environmental regulations that are becoming stricter as
time passes.
With this joint venture, LG Chem will be able to receive a
stable supply of high-quality nickel sulfate, while procuring recycling
capacities, and KEMCO will procure a stable client in the domestic market as
it expands its battery materials business portfolio.
KEMCO possesses one of the top capacities in the world
through its nickel sulfate production capacity of 80,000 tons per year.
Furthermore, based on the nonferrous metal smelting technologies of its
mother company, Korea Zinc, it possesses expert technologies for extracting
core raw materials for batteries such as nickel, cobalt, and manganese.
LG Chem Chief Executive Officer Hak Cheol Shin stated, “This
joint venture is very meaningful in that our platform is becoming
strengthened to become the world’s best comprehensive battery materials
company,” while adding, “We will achieve ceaseless growth in the
eco-friendly battery materials business through bold investments and
collaboration.”
KEMCO CEO Choi James Soung commented, “Despite raw materials
being a key issue throughout the world, nickel procured by KEMCO had nowhere
else to go but for exports until now.” He went on saying, “Based on our
world-leading metal smelting capabilities, we will contribute to the
localization of precursors, which is the missing link in the Korean battery
industry.”
AVEO to
Become the U.S. Foundation for LG Chem Life Sciences’ Oncology Division
LG Chem, Ltd. (“LG Chem”) today
announced that it has completed its previously announced acquisition of AVEO
Oncology (“AVEO”), a commercial stage, oncology-focused biopharmaceutical
company committed to delivering medicines that provide a better life for
patients with cancer, in an all-cash transaction with an implied equity
value of $571M on a fully diluted basis.
“We are excited to complete LG Chem’s acquisition of AVEO, which will
position us to deliver on our mission of becoming one of the world’s leading
oncology companies with a robust clinical pipeline of innovative therapies,”
said Shin Hak-Cheol, Chief Executive Officer of LG Chem.
AVEO plans to accelerate the commercialization of new anti-cancer drugs
developed by LG Chem Life Sciences. With strong capabilities in early-stage
R&D and production process, LG Chem Life Sciences will be positioned to
pursue promising anti-cancer therapies and commercial processes for
pre-clinical and early clinical trials, while AVEO, with its broad expertise
in clinical development and sales in the U.S. market, will oversee clinical
development and commercialization.
“The merger extends LG Chem Life Sciences’ commercial footprint to the
U.S., diversifies our pipeline and advances our combined capabilities with
AVEO, accelerating our ability to develop, commercialize and acquire
world-class cancer therapies,” said Dr. Son Jeewoong, President of LG Chem
Life Sciences. “We look forward to working closely with AVEO’s experienced
and talented team as we welcome them to the LG Chem family.”
“This transaction delivered significant value to our shareholders and
AVEO is now positioned to benefit from the support and resources of LG Chem
as we advance our mission of improving the lives of patients with cancer,”
said Michael Bailey, President and Chief Executive Officer of AVEO. “We look
forward to our next chapter of growth as we realize the tremendous potential
of our promising pipeline and leverage our combined capabilities to deliver
continued progress across our clinical and pre-clinical stage anti-cancer
therapies.”
The Inflation Reduction Act continues to
drive new investment in America, just as it was intended to do. LG Chem
announced this week it will build a new $3 billion cathode manufacturing
facility in Clarksville, Tennessee. When complete, it will be the largest
factory of its kind in the United States.
The Clarksville facility will cover 420 acres
and is expected to produce 120,000 tons of cathode material annually when it
reaches full production in 2027. That’s enough to power 1.2 million electric
vehicles with batteries large enough for a range of 300 miles or more.
Construction of the plant will begin in the
first quarter of 2023, with mass production to start in the second half of 2025.
The Tennessee site will play a critical role in LG Chem’s strategy to increase
its battery materials business, including cathode materials, by a factor of
four.
After reviewing possible locations for the
new factory, LG Chem determined that Tennessee was the best choice due to its
proximity to key customers and ease of transporting raw materials. The active
cooperation of the state and local governments also contributed to the
decision.The company said in a press release sent to CleanTechnica that
the Tennessee facility allows LG Chem to proactively address the changing
dynamics of the global battery material market in accordance with legislation
such as the
Inflation Reduction Act.
In addition to the benefits realized by
investing in manufacturing on US soil, LG Chem envisions the Tennessee site
being the supply chain hub where material and recycling partners work together
to supply global customers, including
General Motors and
Tesla. The company has already selected
Li-Cycle as its battery recycling partner.
The new facility will produce advanced NCMA
cathode materials containing nickel, cobalt, manganese, and aluminum for
next-generation EV batteries with improved battery capacity and stability. The
company says NCMA cathode materials are among the most critical ingredients for
determining the battery capacity and life of electric vehicles.
The Tennessee plant will feature LG Chem’s
most advanced production technology, including the ability to produce more than
10,000 tons of cathode material per line, the highest throughput in the
industry. LG Chem applied this technology for the first time to its fourth
cathode manufacturing site in Cheongju, South Korea, with much success.
The company also plans to implement its smart
factory technology in Tennessee to automate the entire production process and
establish a quality analysis and control system that will be the benchmark for
all other cathode plants in the world.The new facility will be designed with the
environment and future needs of clean energy in mind. LG Chem will collaborate
with power suppliers in Tennessee to respond to the demands of customers,
including battery and electric vehicle manufacturers, for more renewable energy
sources. Operation of the new facility will rely completely on renewable energy
provided by solar and hydroelectric power.
“LG Chem’s decision to invest USD 3.2 billion
in Clarksville is a testament to Tennessee’s unmatched business climate, skilled
workforce and position as a leader in the automotive industry,” said Tennessee
governor Bill Lee. “I thank this company for creating more than 850 new jobs to
provide opportunity to Tennesseans across Montgomery County.”
“The new cathode manufacturing facility in
Tennessee brings us one step closer to becoming the world’s best battery
materials manufacturer and fulfilling our corporate vision to become a top
global science company,” said CEO Shin of LG Chem. “This site will be the North
American manufacturing center of excellence for the cathode supply chain and
lead to the creation of many well paying jobs, contributing to the local economy
in Clarksville.”
The
Inflation Reduction Act Is Working
The Biden Bunch wanted to boost US
manufacturing in the electric vehicle sector, and the Inflation Reduction Act is
making that happen. Some my quibble that NCMA batteries may not be the direction
the industry is going in as more LFP batteries are being specified by several
manufacturers. But if LG Chem, the
second largest battery manufacturer in the world, is putting up $3 billion
to build this factory, it probably has done its homework.
The good news is the jobs that are needed to
make the EV revolution relevant to working Americans are starting to appear.
Once communities become invested in the transition to electric transportation,
some of the FUD about EVs should start to disappear. It’s hard to disparage an
industry that is putting food on your table.
Plastics Today staff | Nov 25, 2022
LG Chem Targets Polycarbonate Production Via
Carbon Capture
After constructing the 1,000-tonnes/year
pilot facility in 2023, the Korean company plans to verify carbon mitigation
values and catalyst performance with the intent to expand scope by 2026.
Korea’s LG Chem plans to construct an
innovative carbon mitigation facility that will produce raw materials for
plastics using carbon dioxide to build its foundation to achieve 2050 Net Zero.
The company will construct a
Dry Reforming of Methane (DRM) facility, which can produce plastics using
carbon dioxide captured at the plant and the byproduct gas, methane.
Dry reforming of methane (DRM) is the process of converting
methane (CH4) and carbon dioxide (CO2) into synthesis gas
(syngas, H2 + CO)
The DRM facility will be constructed as a 1,000-tonne/year pilot plant at the
Daesan site of LG Chem by 2023. After verifying the process technologies and
catalysts developed using proprietary technologies, plans are to expand its
scale by 2026.
DRM is a type of carbon dioxide, capture, and utilization (CCU) technology that
reduces carbon dioxide emissions by more than 50%
while producing resins such as polycarbonates. The
company will build this DRM plant using proprietary technologies instead of
externally licensed technologies, even developing catalysts essential for carbon
dioxide conversion using its own methods. LG Chem is the first in Korea to
commercialize DRM facilities using proprietary technology–based processes and
catalysts.
Until now, it was challenging to commercialize DRM due to issues with catalyst
performance dropping quickly during operation. However, LG Chem applied
proprietarily developed processes and catalyst technologies to address this
issue, thereby significantly strengthening the durability of catalysts.
LG Chem established a new organization dedicated to the catalyst business to
internalize catalyst production technologies in 2019. To date, the company has
developed and launched catalysts for products such as polyolefin elastomers and
carbon nanotubes.
Kuk Lae Noh, President of LG Chem’s Petrochemicals Co., stated, “LG Chem does
intend to be bound within the traditional petrochemical industry structure but
is continuously striving to take a leading role in carbon mitigation and
sustainable innovative technologies in the global chemical industry.”
Nov 26, 2022
LG Chem & Korea Zinc announce
component partership
LG Chem has announced a
partnership with a South Korean smelter of nonferrous metals, Korea
Zinc, to work together for a stable supply of EV battery components
in North America.
LG Chem signed a memorandum of understanding
with Korea Zinc on a comprehensive business partnership, including the joint
exploration of metals that can be used in the manufacturing of cathode
materials. The partnership will come with a stock swap between the two
companies, worth a total of 257.6 billion won ($190.5 million). The announcement
comes shortly after LG Chem unveiled a $3 billion plan to build its first
cathode plant in the state of Tennessee.
According to LG Chem, the partnership will
create a huge synergy in securing a stable supply chain of battery materials,
using Korea Zinc’s smelting technology that enables the recovery of metals and
manufacturing of high-purity metals.
LG to slim down petrochem as Chinese rivals creep up
South Korea’s LG Chem Ltd. is speeding up restructuring efforts to sell or
downsize uncompetitive businesses, with an aim to focus on
three growth drivers: battery materials, eco-friendly businesses and new drug
development.
Earlier this month, it sold the in vitro diagnostics
business of its life science division to Seoul-based
Glenwood Private Equity for 150 billion won ($117
million).
Now it is seeking to offload a minority stake in LG Energy
Solution Ltd. to raise about 2 trillion won. LG Chem owns 81.84% of LG
Energy, the world’s second-largest rechargeable battery maker.
LG Energy, with an
81.8% stake, has tapped Goldman Sachs, Citigroup Global Markets Korea Securities
Ltd. and Hongkong and Shanghai Banking Corporation Ltd. (HSBC) for equity sales
to foreign investors, according to investment banking sources on Monday.
“We will carry out bold and preemptive restructuring for marginal businesses,”
LG Chem’s petrochemical business head Roh Kuk-rae said in an email message to
its employees on Monday.
“We cannot delay restructuring of marginal businesses that are not competitive.”
The restructuring will include suspending facility operations for a longer
period of time, withdrawing from some businesses and securitizing assets by
selling stakes or establishing joint ventures. That will lead to the
redeployment of some employees.
Such moves are part of efforts to brace for the deteriorating macroeconomic
environment as LG is grappling with the rising threat from Chinese rivals in the
subdued petrochemical market.
“In addition to domestic refiners’ entry into the petrochemical industry,
Chinese companies’ rush to build and expand oil refining complexes integrated
with petrochemical production lines is driving us to a marginal situation,” Roh
noted.
“There are an increasing number of products of which the selling prices do not
even reach the level of variable costs, so factories cannot operate.”
The petrochemical division has been extending losses. It reported an operating
loss of 50.8 billion won ($40 million) in the first quarter of this year, after
suffering a 165.9 billion won shortfall three months before. The division has a
total of 5,000 employees at home and abroad.
It produces petroleum-based plastic materials such as ethylene, phenol and ABS
resins, most of which are now classified as conventional products.
“We decided to shed non-core businesses and focus on new drug development for
global markets,” said an LG Chem official.
It is also restructuring its battery materials business by relocating to
upgraded facilities.
The LG Group unit is seeking to sell a cathode production factory in Iksan,
North Jeolla Province, with an annual production capacity of 4,000 tons of
cathode materials.
The Iksan facility is much smaller than its two other domestic plants: one in
Cheongju, North Chungcheong Province, with a capacity of 70,000 tons. A cathode
factory in Gumi, North Gyeongsang Province, will be completed by the end of this
year with a capacity of 60,000 tons.
LG is understood to be looking for a new factory site near its existing facility
in Cheongju.
Its three key businesses are expected to generate a combined 40 trillion won in
sales in 2030, accounting for 57% of the company’s total sales projection of 70
trillion won the same year.
It plans to spend more than 10 trillion won to expand its cathode production
capacity and to develop silicon-based anode materials by 2028.
03 Apr, 2024
LG Energy Solution's $5.5 Billion Stand-Alone Battery
Manufacturing Complex Project in Arizona Well Underway
LG Energy Solution
invites Arizona state
government and local community officials for a
construction progress update on its second U.S.
stand-alone facility
Completion and start
of production expected in about two years, with
full-scale hiring for thousands of new jobs to begin in
the second-half of 2025
The company to
further strengthen market competitiveness in the U.S.
underpinned by product and technology leadership
LG
Energy Solution Arizona 電気自動車用
LG
Energy Solution Arizona ESS energy storage systems用
The construction of a
major battery manufacturing complex in
Arizona,
announced by LG Energy Solution last
year, is on track to be completed in two years with
the first round of hiring expected to begin at the end of
this year. The company provided progress updates on its
USD 5.5 billion (KRW
7.2 trillion) stand-alone facility during a
stakeholder meeting on April 3
at Combs High School in San Tan Valley near
the town of Queen Creek
where the complex is located.
Mar 24, 2023
LG Energy
Solution to Invest KRW 7.2 Trillion to Build
Battery Manufacturing Complex in Arizona,
Step Up EV and ESS Battery Production in
North America
The largest single investment
ever for stand-alone battery
manufacturing facility in North America
The new manufacturing complex to
produce cylindrical batteries for EVs
(27GWh) and LFP pouch-type batteries for
ESS (16GWh), with total annual
production capacity reaching 43GWh
Production to start in 2025 and
2026 respectively, addressing customers’
needs for locally manufactured batteries
in response to IRA tax credits and surge
in market demands
The manufacturing complex to
ensure cohesive partnerships and further
promote collective drive to expedite
clean energy transition with major EV
and ESS players in North America
The attendees included
Brian Oh, Head of Mobility &
IT Battery Division at LG Energy Solution;
Hyung Kim, Head of ESS
Battery Division at LG Energy Solution;
Richard Ra, President of LG
Energy Solution Arizona; Gov. Katie
Hobbs of Arizona;
Sandra Watson, President and
CEO of Arizona Commerce Authority;
Mike Goodman, Supervisor and Chairman of
Pinal County;
Julia Wheatley, Mayor of
Queen Creek, and other
members of state government and local community officials.
The complex consists of
two manufacturing facilities
which are the company's first stand-alone cylindrical and
ESS battery plants in North
America. The cylindrical battery plant, called
LG Energy Solution Arizona,
will produce 46-Series batteries for
electric vehicles (EV). A crucial part of the
company's innovative product portfolio, 46-Series
cylindrical batteries demonstrate LG Energy Solution's
advanced technological leadership throughout various
applications for EVs. As the company plans the first mass
production of 46-Series batteries at its Ochang plant in
Korea in the second half of this year, which is the earliest
among major global battery manufacturers, LG Energy Solution
Arizona is expected to continue the momentum and reinforce
the manufacturing capability.
直径46mmの円筒型バッテリーセル
The ESS battery
manufacturing facility, called LG
Energy Solution Arizona ESS, will produce
lithium iron phosphate (LFP)
pouch-type batteries for energy storage systems (ESS).
It is one of the first ESS-exclusive battery production
facilities in the world. By situating its stand-alone ESS
battery facility in North America,
the world's biggest ESS market, LG Energy Solution aims for
a timely response to the fast-growing needs for locally
manufactured batteries on the back of the U.S. clean energy
policies, providing ESS batteries with enhanced
competitiveness in cost, battery life, and safety.
When fully operational,
the complex's average annual production capacity is expected
to reach 53GWh (cylindrical
batteries 36GWh, LFP ESS batteries 17GWh).
During the construction
progress updates and site tour,
Richard Ra, President of LG Energy Solution Arizona,
said the project has been well underway since the
groundbreaking last November, with initial land preparations
completed and steel beams now being placed at the site. With
the construction going as planned, the manufacturing
facility for cylindrical EV batteries is expected to be
completed in late 2025, and the facility for LFP pouch-type
ESS batteries in the following year.
Once the construction is
complete, both facilities are expected to start production
in 2026. To secure high-quality workforce that will operate
the state-of-the-art manufacturing complex, the company will
also commit to hiring and fostering the next-generation
battery professionals in the area, creating several thousand
new quality jobs. "We expect the recruitment of our [launch
team] members to begin late this year, and a full-scale
recruitment to follow from the second half of 2025," said
Ra.
"Of many other sites,
this Arizona facility has a
special meaning to us. This is the second stand-alone
facility to be built in the U.S. And it is also the first
manufacturing facility to produce cylindrical batteries in
the U.S. Right here, is where we can build quality
cylindrical batteries, which will be used to power millions
of EVs," said Brian Oh, Head
of Mobility & IT Battery Division at LG Energy Solution. "It
gives me a great pleasure, knowing that this landmark
project, here in Queen Creek
will create thousands of new, quality-jobs that will
contribute to building green economy."
"ESS plays a vital role
in green energy infrastructure as it utilizes power supply
in a flexible manner," said Hyung
Kim, Head of ESS Battery Division. "There is no
better place to build the source of our sustainable energy
here in Arizona, where the
abundant solar energy surrounds the region. Quality
batteries, made right here in the Copper State, will reach
every corner of America to provide power."
"This transformative
investment will have a lasting impact not only in
Arizona, but across the
country and moves us one step closer toward our clean energy
goals," said Governor Katie Hobbs.
"These are the jobs of the future - and the
State of Arizona is
committed to being an active partner in ensuring Arizonans
have the skills to fill these jobs."
LG Energy Solution has
another stand-alone facility in
Michigan, which was built a decade ago and is
currently undergoing expansion that would quintuple its
average annual production capacity. The company also has
five other joint venture facilities in the U.S. with major
automakers, including General Motors, Honda, and Hyundai
Motors Group, representing its full-fledged efforts to
provide IRA-compliant batteries that will expedite the clean
energy transition in the country.
With the
Arizona complex, the
company has now secured the most diverse and competitive
product portfolio, which encompasses pouch-type and
cylindrical batteries for EVs and LFP batteries for ESS, in
North America.
"By further expanding our
product portfolio and offering diverse options to our
customers, we will continue to strengthen our market
competitiveness," said David Kim,
CEO of LG Energy Solution. "We also expect to keep growing
in the global market by maximizing customer value through
unmatched technology leadership."
LG Chem with
China's Huayou to make battery materials in Indonesia,
Morocco
South Korea's LG Chem
Ltd has entered a partnership with China's Huayou
Group's subsidiary Youshan, it said on Sunday, to build
a joint electric vehicle (EV) battery material plant in
Morocco to diversify its portfolio.
Huayou has joined the
growing number of Chinese electric vehicle and battery
companies seeking to expand overseas to get closer to
their foreign clients and benefit from local incentives.
In a separate
statement, Huayou's listed unit Zhejiang Huayou Cobalt
Co said it intended to build plants with LG Chem in
Indonesia and Morocco under a strategic partnership to
promote international growth.
The Morocco plant,
set to start production in 2026, aims to produce 50,000
tonnes of lithium-phosphate-iron (LFP) cathode materials
annually, enough to be installed in 500,000 entry-class
EVs, the South Korean chemical maker said in a
statement.
LG Chem, known for
manufacturing more expensive nickel-cobalt-manganese (NCM)
cathodes, is entering the LFP cathode business to meet
growing demand for cheaper LFP batteries as the auto
industry seeks to produce more affordable EVs, whose
most expensive components are the batteries.
LG Chem said LFP
cathodes produced at the Morocco plant will be supplied
to the North American market and could be eligible to
receive subsidies from the U.S. Inflation Reduction Act
(IRA) as Morocco is a free-trade partner with the United
States.
The IRA is designed
to wean the United States off the Chinese supply chain
for EVs.
It requires at least
40% of the value of critical minerals used in an auto
battery to be sourced from the United States or a free
trade partner to qualify for a $3,750 tax credit per
vehicle. South Korea has a free-trade agreement with the
United States.
LG Chem and Youshan
would need to adjust their respective equity share in
compliance with the U.S. Treasury Department's guideline
of a "foreign entity of concern," a provision aimed at
China, LG Chem said in the statement.
The U.S. Treasury
Department has not yet provided a precise definition of
"foreign entity of concern" and how it would be applied.
LG Chem also
announced an additional investment plan with Huayou
Cobalt to build a lithium conversion plant in Morocco,
with the aim of starting mass production by 2025 with an
annual capacity of 52,000 tonnes of lithium.
In addition, LG Chem
said it plans to build two other facilities in Indonesia
- a precursor plant with an annual production capacity
of 50,000 tonnes and a plant to extract mixed hydroxide
from nickel ore for precursor production.
The size of LG Chem's
investments for its four facilities with Huayou Group
has not been finalised.
(Reporting by
Heekyong Yang; additional reporting by Samuel Shen in
Shanghai; Editing by Shri Navaratnam and Barbara Lewis)
2024/10/7 GlobalData
LG Chem’s new material helps prevents battery fires
South Korea’s LG Chem Ltd has announced it has developed a
new temperature-responsive material
designed to suppress thermal runaway in electric vehicle (EV)
batteries.
The company said the Safety Reinforced
Layer (SRL), developed in collaboration with the
Department of Battery Science at the Pohang University of
Science and Technology, is a composite material which
changes its electrical resistance based on temperature –
allowing it to act as a "fuse" that blocks the flow of
electricity in the early stages of overheating.
The company confirmed it had already conducted safety
verifications on the material in collaboration with the
group’s battery manufacturing unit LG Energy Solution, with
details of the findings published in the September edition
of Nature Communications. The company pointed out that “in
both battery impact and penetration tests, the batteries
equipped with the thermal runaway suppression material
either did not catch fire at all or extinguished the flames
shortly after they appeared, preventing a full-blown thermal
runaway event.”
The material is applied in the form of a layer 1 micrometer
thick, or about one 100th of the thickness of a human hair,
between the cathode layer and the current collector - an
aluminum foil that acts as the electron pathway in the
battery. When the battery’s temperature rises beyond the
normal range, between 90°C and 130°C, the material reacts to
the heat by altering its molecular structure and effectively
suppressing the flow of current.
The company further clarified “this thermal runaway
suppression material is highly responsive to temperature,
with its electrical resistance increasing by 5,000 ohms for
every 1°C rise in temperature. The material’s maximum
resistance is over 1,000 times higher than at normal
temperatures and it also features reversibility, meaning the
resistance decreases and returns to its original state,
allowing the current to flow normally again once the
temperature drops.”
Lee Jong-gu, who headed the research at LG Chem, said in a
statement: “This is a tangible research achievement that can
be applied to mass production in a short period of time. We
will enhance safety technology to ensure customers can use
electric vehicles with confidence and contribute to
strengthening our competitiveness in the battery market.”
November. 15, 2024
LGエネの米国法人、発足以来最大規模のESS供給を契約
LGエネルギーソリューションの米国エネルギー貯蔵装置（ESS）法人のLG Energy Solution
Vertech. Inc.が、現地の再生可能エネルギー企業のTerra-Gen
と最大8GWh（ギガワット時）規模のESS供給契約を交わしたと明らかにした。Vertech. Inc.
の発足以来、最大規模の契約だ。
Vertech.
Inc.は、2022年2月にNEC Energy
Solutionを買収して設立されたESS
SI専門のアメリカ法人である。ESSバッテリーの供給にとどまらず、設計、設置、維持管理などのトータルソリューションを提供し、北米地域で事業競争力を高め続けている。
Gevo and LG Chem extend partnership to expand
ethanol-to-olefins production
Gevo,
Inc. (Englewood, Colo.) and LG Chem Ltd. (Seoul,
South Korea) are extending their joint development
agreement. The agreement extension enables LG Chem
to assess existing assets for deploying
Gevo’s Ethanol-to-Olefins (ETO)
technology while accelerating
commercialization activities, considering project
scale and end-product markets.
米国のGevo（コロラド州エングルウッド）と韓国のLG化学（ソウル市）は、GevoのバイオエタノールからオレフィンへのETO（Ethanol
to
Olefins）変換技術を利用して、100％バイオベースの化学品のバイオプロピレンを開発するための共同開発契約を締結したと発表した。
Gevoの ETO
技術は、SAFを含む再生可能な燃料や化学品に利用できる。オレフィンは石油化学の分野ではビルディングブロックとも呼ばれるが、この変換技術を用いることで、カーボンニュートラルまたはカーボンネガティブなビルディングブロックを生産することができる。植物由来の再生可能なオレフィンは、光合成によって捕捉された大気中のCO2を原料としており、現在市場に出回っているオレフィン製品と同じ性能を発揮すると期待されている。
“Gevo’s
partnership with LG Chem is a great example of how
we intend to accelerate development and
commercialization of our patented ETO technology to
enable renewable chemicals with our world-class
partner,” said Gevo’s Chief Carbon and Innovation
Officer, Dr. Paul Bloom. “Our ethanol-to-olefin
process holds immense promise to decarbonize a
substantial portion of the market for propylene, and
LG Chem is starting commercial activities ahead of
the timeline we originally planned.”
Gevo’s patented
ETO technology can target carbon-neutral or
carbon-negative drop-in replacements for traditional
petroleum-based building blocks. These are core
olefins, that can be used for renewable fuels and
chemicals, including sustainable aviation fuel and
bio-propylene. ETO technology is just one of
multiple patented technologies that Gevo is bringing
to bear on the challenges of developing
cost-effective bio-based renewable fuels and
chemicals.
“LG Chem is
committed to scaling pathways to sustainable
products, and leveraging partnerships is a proven
way to gain access to proprietary technologies and
share ours,” said Dong-hyun Cho, Vice President,
Head of LG Chem’s Petrochemicals R&D. “Our joint
development agreement with Gevo is already helping
LG Chem to shape sustainable and eco-friendly future
business strategies.”
Because it can
replace fossil-based products as a renewable raw
material for various plastic products, bio-propylene
is expected to play a pivotal role in the rapid
growth of the bioplastic market and circular
economy. Once commercialization is achieved,
bio-propylene could be used as a drop-in replacement
for use in a range of products from auto parts to
flooring to diapers to replace petroleum products
with bio-based materials with a low or negative
carbon footprint.
