LG Chem has joined forces with Swedish furniture company Ikea to make inroads into the British power market. Under the collaboration, a world-class household solar energy storage system LG Chem possesses will be sold through Ikea’s distribution networks.
LG Chem recently released its household energy storage system (ESS) on the British market in cooperation with the UK’s largest solar company Solarcentury, and Ikea. The new ESS product, which will be sold in Ikea’s outlets, will be a 3.3KWh model based on a lithium-ion battery produced by LG Chem.
The agreement calls for LG Chem to supply batteries to Solarcentury, which produces finished products, and Ikea will sell them through its distribution networks. The ESS model, consisting of a solar panel and a battery, can store unused electricity. The model, which fetches as much as 10 million won, could save about 800,000 won in electricity charges annually and could pay for itself after about 12t years of use. Ikea offers a 25-year product guaranty.
Ikea has 253 outlets in 35 countries. The company is accelerating efforts to strengthen its presence in the eco-friendly business by selling household ESS models.
The deal is a win-win system in which Ikea can improve its corporate image as an eco-friendly corporation and LG Chem can enter the British ESS market through Ikea’s distribution networks.
Ikea is involved in a pilot program to put the ESS model on the British market in keeping with the UK’s government policies to nurture photovoltaic power, and the company plans to expand the sales of the model to other European countries and the United States. The deal is expected to help LG Chem secure a competitive edge in the fast-growing household ESS market, business sources said.
A market survey company Navigant Research reported that the value of the global household ESS market is forecast to surge from 730 billion won in 2017 to 12 trillion won in 2024 with an average annual growth rate of 44 percent.
LG Chem Buys Stake in Chinese Energy Storage System (ESS) Company
LG Chem has acquired a 30 percent stake in Wuxi CL New Energy Technology Ltd., a Chinese energy storage system (ESS) company, for 1.178 billion won.
The transactions was made to increase LG’s exposure in investments related to the ESS market.
LG Chem, which is struggling to make headway in the Chinese EV battery market, is carrying out a strategy to make a detour to tap the Chinese ESS market. Korean companies, including LG Chem, have a hard time selling their EV batteries there since EV vehicles outfitted with Korean-made EV batteries were excluded from government subsidies in the wake of Chinese retaliation over the installation of the THAAD self-defense system in Korea.
LG Chem Aims to be ‘Top 5’ Global Chemical Company
LG Chem is concentrating its capabilities on nurturing core businesses, including basic materials, batteries, IT/electronics materials and life science.
The company aims at becoming a “global top five” chemical company by advancing its business portfolio.
The Basic Materials & Chemicals Business Division aims to raise annual production of elastomers, a value-added synthetic resin, to 290,000 tons. LG Chem has secured a proprietary metallocene catalyst and process technology. The company is rated as having global top-class product competitiveness by establishing a vertical integration regime ranging from basic materials to catalyst and finished products.
The battery business division plans to maintain a competitive edge in terms of price, function and safety by focusing on R&D. The goal is to retain the No. 1 position in a race to win a project to produce a G3 electric car that can drive 500 km per charge.
In an effort to solidify the No. 1 position in the global polarizer market, LG Chem plans to increase production in China, which has annual growth of more than 30 percent. Ever since LG Chem became the first company to commercialize LCD polarizers in 2000, the business division has steadily grown through aggressive investments in R&D and the development of differentiated products. As a leading global company in the polarizer market, LG Chem has also been strengthening global competitiveness in the areas of ITO Film, touch panels and circuit board materials.
The Life Sciences Business Division plans to nurture Zemiglo, Korea’s first new drug to treat diabetes, into a leading product. The division plans to accelerate efforts to develop new drugs to become the nation’s leader in the metabolic disorder and bio medicine segments. It also wants to explore overseas markets.
It plans to advance the release of such drugs as diplococcus pneumoniae and LDVD, a mixed vaccine for the prevention of diphtheria, tetanus, pertussis, hepatitis B, Haemophilus Influenzae type b (Hib), and poliomyelitis by conducting their clinical tests in Korea and abroad.