LG Chem invests US$8.7 billion in batteries as well as renewable and biological materials

South Korea’s leading chemical manufacturer, LG Chem Ltd, announced in mid-July that it would invest around 8.7 billion US dollars in battery materials as well as the renewable and bio sector to expand its business activities in the “green” sector. The company also announced that it is intensively looking for partners, acquisition candidates and joint ventures to achieve sustainable growth in the aforementioned three growth markets. LG Chem Vice Chairman Shin Hak-cheol said during an online press conference about the investment plans that they are no longer a traditional petrochemical company. Instead, he wants to turn LG Chem into a material and raw material manufacturer and open up new growth markets. To achieve this, he said, the company will orient its business units towards sustainable growth, using the so-called ESG standards. Equipment for processing of raw materials is an increasingly growing market in Korea. Introduction of corresponding components and products in many cases require KC certification or also KCs certification for explosion-proof products (also called KOSHA).

Hak-cheol went on to say that more than 30 joint venture and acquisition projects were currently in the pipeline and that his company expects to report significant progress as early as the second half of this year. LG’s announcement follows a whole wave of business in South Korea to accelerate their efforts to transform into green businesses. Back in early July, SK Innovation Co, a petroleum and batteries company, said it would invest about $26.5 billion in green projects by 2025. Lotte Chemical Corp. is investing US$3.78 billion in hydrogen projects as a new business while turning away from its main petrochemicals business.

Regarding LG Chem’s latest announcement, it will invest about 5.15 billion US dollars in the e-mobility sector through its subsidiary LG Energy Solution Ltd. This will involve expanding production facilities for battery materials including cathodes, separators and carbon nanotubes (CNTs). LG expects the market for battery-related materials to increase threefold to 85 billion US dollars by 2026. LG will invest another US$5.78 billion in biotechnology, recycling and renewable materials. LG Chem’s pharmaceutical division also has promising candidates in development for the treatment of diabetes and cancer. The funds for all these investments will be raised through South Korea’s largest-ever IPO. Later this year, LG Energy Solutions is to be floated on the stock market for more than 8.58 billion US dollars. LG Chem will remain the majority shareholder with 70 to 80 percent of the shares.

South Korea is considered one of the most important and innovative industrial nations in the world. In order to gain market access to this highly technological country, products imported into South Korea must be tested and certified. The KC mark or certificate is roughly equivalent to the European CE mark and applies to 730 different products. MPR International GmbH has solid experience in Korea certification and competent local partners. We will be happy to advise you on the scope and procedure of a Korea certification without obligation.

If you need assistance or have any questions regarding Korean certifications like KC, KC EMC, KCs or KCs for explosion safety products, feel free to contact us any time.

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Julian Busch

About the author: Julian Busch is the founder and managing director of MPR International GmbH

Publisher: MPR International GmbH

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