LG

■ South Korean President Moon Jae-in. Gyeongsangbuk-do Governor Lee Cheol-woo, Gumi Mayor Jang Se-yong, Chief Executive Officer Hak Cheol Shin attend groundbreaking ceremony at the Gumi Convention Center on the 11th
 
■ Approximately 500 billion KRW to be invested by 2025 to build the world’s largest single cathode material plant
    - Production of NCMA cathode materials for next-generation EV batteries that integrate the highest levels of material technologies * NCMA (Nickel, Cobalt, Manganese, Aluminum)
    - Annual production capacity of approximately 60,000 tons; production possible for approximately 500,000 high-performance fully electric vehicles
 
■ Pursuing win-win activities such as creating more jobs, fostering professional human resources, strengthening cooperation with local businesses, etc.
 
■ President Moon Jae-in,
    “Korea will become a battery superpower through the Gumi job initiative”
    “The start of the construction for the plant that will create jobs in Gumi is an example on how local labor, management, private and public sectors can work together to respond to the global supply chain crisis”
 
■ Chief Executive Officer Hak Cheol Shin,
    “We will strive to make this the best plant that can respond to the rapidly growing global demand for EV battery materials by investing the world’s greatest technologies and facilities”
    “We will strengthen its role as a key base for accelerating LG Chem’s future growth engine to foster it as a sustainable and differentiated business”
 
 
LG Chem will construct the world’s largest plant exclusively for cathode materials by teaming up with Gumi City as it targets the rapidly growing battery market.
 
The Company announced on the 11th at the Gumi Convention Center located in Gumi, Gyeongsangbuk-do that it had held the groundbreaking ceremony for the Gumi cathode plant, which will apply the Gumi job model.
 
This event was attended by South Korean President Moon Jae-in, Minister of Economy and Finance Hong Nam-ki, Minister of Trade, Industry and Energy Moon Sung Wook, Minister of Employment and Labor Ahn Kyung-deok, Minister of SMEs and Startups Kwon Chil-seung, Gyeongsangbuk-do Governor Lee Cheol-woo, Gumi Mayor Jang Se-yong, National Assemblyman Lee Hack-young, National Assemblyman Koo Ja-geun, and LG Chem Chief Executive Officer Hak Cheol Shin, in addition to about 100 citizens of Gumi who participated though online streaming.
 
Approximately 500 billion KRW to be invested by 2025 to build the world’s largest exclusive cathode material plant
 
Cathode materials, which account for about 40% of battery production costs, are core materials that determine the key performance of batteries such as capacity and life as one of the four major battery materials together with anodes, separators, and electrolytes.
 
LG Chem plans to invest approximately 500 billion KRW on a site spanning across over 60,000㎡ at the Gumi National Industrial Complex 5 in Gumi by 2025, thus procuring annual cathode material production capacity of 60,000 tons. This is the world’s largest scale for a single plant and is enough to produce batteries for about 500,000 high-performance fully electric vehicles (EV, 500km range) every year.
 
The Gumi Plant that just began construction will build an exclusive line for NCMA (Nickel, Cobalt, Manganese, Aluminum) cathode materials that will be used for next-generation EV batteries, which LG Chemical is focusing on.
 
NCMA cathode materials are products that integrate LG Chem’s best material technologies and it is characterized by outstanding stability and output by applying aluminum that reinforced stability by expanding nickel content, which determines energy density, to around 90%.
 
In order to lead the global market in cathode materials, LG Chem will expand its production capacity from the current 80,000 tons to 260,000 tons by 2026, and is current developing cobalt-free technologies, which does not use cobalt that has high price volatility, as well as single crystal cathodes for next-generation solid-state batteries.
 
Meanwhile, according to the market survey company, SNE Research, it is expected that the global battery cathode material demand will grow at annual average of more than 20% from 990,000 tons last year to 6.05 million tons by 2030.
 
In addition to this, LG Chem plans to team up with Gumi City and assertively pursue local activities such as strengthening cooperation with local businesses for mutual growth, creating jobs and fostering experts, as well as nurturing teenagers and college students.
 
President Moon Jae-in stated in his congratulatory address, “Korea will become a battery superpower through the Gumi job initiative,” and added, “The start of the construction for the plant that will create jobs in Gumi is an example on how local labor, management, private and public sectors can work together to respond to the global supply chain crisis.”
 
LG Chem Chief Executive Officer Hak Cheol Shin commented, “We will strive to make the best plant that can respond to the rapidly growing global demand for EV battery materials by investing the world’s greatest technologies and facilities at the Gumi Plant.” He further added, “We will strengthen its role as a key base for accelerating LG Chem’s future growth engine to foster it as a sustainable and differentiated business.”