April 24, 2024

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[THE INVESTOR] LG Chem said on April 11 that it has decided to invest 239.4 billion won (US$224.80 million) in two separate joint ventures with Huayou Cobalt, a Chinese supplier of the mineral.

The deal underscored LG Chem‘s efforts to secure a stable supply of cobalt, a key material in making electric vehicle batteries.

The two JVs -- set to be completed in China by 2020 -- will have an annual production capacity of 40,000 tons of precursors and cathodes, respectively, an amount that can make batteries for about 400,000 EVs.

LG Chem Vice Chairman and CEO Park Jin-soo said the JVs will help LG Chem further strengthen its cost competitiveness.

The firm said it plans to boost the annual production capacity of precursors and cathodes to 100,000 tons each in case the demand goes up.

By Song Seung-hyun and newswires (ssh@heraldcorp.com)