LG Chem is forming a cathode material production joint venture with Tianjin B&M Science and Technology (B&M), a subsidiary of China’s Zhejiang Huayou Cobalt (Huayou Cobalt) that specializes in cathode materials.

The establishment of the joint venture further cements our vertical integration system with key raw materials to produce affordable, high quality cathode materials. We will continue to strengthen our efforts to supply best-in-class battery materials to our customers.

—LG Chem CEO Shin Hak-cheol

This partnership is another critical step in the expansion of B&M’s cathode business in the global market, a key component of our metal supply strategy. The combination of LG Chem’s competitive technological edge and dominant market share with the strong value chain capability of Huayou Cobalt will contribute greatly to advancing the global lithium battery sector.

—Huayou Cobalt chairman Chen Xuehua

B&M’s capital investment in LG Chem’s Gumi cathode production plant will result in a 49% stake in the JV with the remaining 51% to be held by LG Chem. Both partners have committed KRW 500 billion (approx. US$403 million) toward the initiative by 2025. The joint venture will be led by Kim Woosung, current president of LG Chem’s Gumi site.

With an intense focus on manufacturing NCMA (nickel, cobalt, manganese, aluminum) cathode materials for next-generation EV batteries, LG Chem plans to begin initial mass production at Gumi in the second half of 2024. The annual production capacity of 60,000 tons will be enough to power approximately 500,000 high-performance EVs, each with a driving range of 500 kilometers.