LG Chem invests 500 billion won in Gumi cathode manufacturing plant

LG Chem will invest $ 500 billion by 2024 in the construction of a battery-powered anode plant in Gumi, North Gyeongsang Province. The goal is to regularly supply and receive cathode materials, the essential raw material for batteries, and to stimulate the localization of core materials.

On May 25, LG Chemical signed an investment agreement with Gumi Gyeongbuk Governor, Lee Kyu-buk, Gumi Mayor, Jang Se-yong, LG Chem Vice President, and local residents of the center. of Gumi conventions.

The new plant will be located on the 60,000 m² site of the Gumi City National Industrial Complex. It will start producing next year and will have an annual production capacity of about 60,000 tons (t) after 2024, once the investment is completed. It is capable of producing around 500,000 batteries for a high performance pure electric vehicle (EV) capable of traveling more than 380 km (km).

An official of LG Chem said: "The new Gumi anodes plant, which will be established with Cheongju and Iksan, should contribute to the expansion of domestic supply and demand of basic materials for batteries, to a stable supply chain and to cost competitiveness ".

The cathode material is one of the four main raw materials (anode, anode, electrolyte, separator) of the battery. It is a high-value material with a high-tech barrier, representing approximately 40% of the cost of the battery material.

LG Chem plans to gradually increase the rate of internalisation of battery anode materials in the future. In addition to the Gumi plant, we plan to increase the production capacity of the Cheongju plant by 2.5 tons to more than double.

LG Chem's cumulative order backlog for automotive batteries exceeded the 110 trillion won acquired at the end of March. Currently, the order book is growing rapidly. Sales in the battery sector, which is responsible for this sector, are expected to grow from 6.2 billion won in 2006 to 31.6 billion in 2024.

According to the B3 market research, the car battery market will grow from 116 GWh this year to 569 GWh in 2025. The market for cathode materials, which is a core material, is also expected to explode explosively.

On the other hand, this agreement is the first economic model of "Gumi-type jobs", which is part of the government-sponsored regional win-win employment model.

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This investment is due to the fact that LG Chem, which needed to increase the production of anodes due to the rapid growth of the electric car battery market, and that Gumi City, which was in the process of Attract companies, fell in love. LG Chem predicted that the construction of the Gumi factory would create high quality jobs for about 1,000 people, directly or indirectly.

"We will increase our competitiveness in the field of batteries by accelerating the rate of localization through the internalisation of core materials, starting with the investment in Gumi," said Shin Hak-cheol, vice president from LG Chem. I will do my best to build a foundation. "