LG Chem, a prominent South Korean chemical company, has unveiled its bold plans to revolutionize the battery materials market and become the leading global supplier by 2030.
As part of its new business strategy, LG Chem aims to increase its battery materials sales from 4.7 trillion won (3.6 billion euros) in 2022 to a staggering 30 trillion won (23.5 billion euros) by 2030, representing a remarkable six-fold growth. This ambitious endeavor will have significant implications for the electric truck industry, which heavily relies on advanced battery technologies.
Recognizing the growing demand for electric vehicles (EVs) and the need for efficient and reliable battery solutions, LG Chem is expanding its portfolio beyond cathode materials. While maintaining its leadership position in cathode production, the company plans to venture into other battery materials such as separators and carbon nanotubes (CNTs). Research and development efforts will focus on innovative materials like pure silicon anode materials and solid-state battery electrolytes.
To solidify its market leadership, LG Chem intends to establish a global production system connecting key regions, including Korea, China, the USA, and Europe. The company will also forge strategic partnerships to secure a sustainable metal supply chain. Collaborative initiatives with major players in the industry, such as Huayou Cobalt, Piedmont Lithium, and Korea Energy Management Cooperation (KEMCO), involve establishing joint ventures, signing lithium contracts, and making equity investments.
LG Chem’s CEO, Shin Hak-cheol, highlighted the company’s comprehensive transformation efforts, which include reforming the business portfolio, implementing digital transformation (DX) strategies, and strengthening operational capabilities across global regions. These initiatives position LG Chem as a leading global science company, ready to meet the evolving needs of the market.
In line with its ambitious growth plans, LG Chem aims to expand its production capacity for cathode materials from 120,000 tonnes in the current year to an impressive 470,000 tonnes by 2028. The company’s focus on high-nickel cathodes for pouch-type and cylindrical batteries will enhance their performance and energy density, making them ideal for electric trucks and other heavy-duty applications. LG Chem’s pursuit of high-voltage mid-nickel (Mid-Ni), lithium iron phosphate (LFP), and manganese-rich (Mn-Rich) cathode materials further demonstrates their commitment to innovation and meeting diverse market needs.
The impact of LG Chem’s ambitious goals extends beyond battery materials alone. The company envisions becoming a “top global science company” by also expanding into sustainability businesses and innovative new drugs. By 2030, these three fields are projected to account for 57 percent of the company’s total sales, representing a significant shift from its petrochemical-centric portfolio.
As LG Chem strengthens its position as a leading battery materials supplier, the electric truck industry stands to benefit from more advanced and reliable battery technologies. With improved energy density, longer range capabilities, and faster charging times, electric trucks powered by LG Chem’s cutting-edge battery materials have the potential to transform the transportation sector, reduce emissions, and contribute to a greener and more sustainable future.