LG Chem to Set Up World’s Largest Cathode Materials Plant in Gumi

President Moon Jae-In, Minister Moon Sung-wook of the Ministry of Trade, Industry and Energy Seung, Deputy Prime Minister for Economy and Finance Hong Nam-ki, Minister Kwon Chil-seung of the Ministry of SMEs and Startups, Gyeongsangbuk-do Gov. Lee Chul-woo Lee, and LG Chem Vice Chairman Shin Hak-cheol attend a ground-breaking ceremony to launch a project to build a cathode materials plant at the Gumi Convention Center on Jan. 11. (Photo on the courtesy of Cheong Wa Dae website)

LG Chem plans to build the world’s largest cathode material plant in Gumi City in cooperation with the municipal government. The plan is designed to make inroads into the global battery market, which is growing fast of late.

LG Chem said on Jan. 14 that the company had a groundbreaking ceremony to launch the project to build the cathode material plant.

Among those on hand at the event were President Moon Jae-In; Minister Moon Sung-wook of the Ministry of Trade, Industry and Energy ; Deputy Prime Minister for Economy and Finance Hong Nam-ki; Minister Kwon Chil-seung of the Ministry of SMEs and Startups; Gyeongsangbuk-do Gov. Lee Cheol-woo and LG Chem Vice Chairman Shin Hak-cheol.

Cathode materials account for 40 percent of the cost of producing a battery. They are one of the top materials for EV battery production, along with anode materials, separator and electrolyte, which determine the volume, longevity and other major functions of the battery.

LG Chem plans to secure capacity to produce 60,000 tons of cathode materials annually by investing about 500 billion won at the site, which covers some 60,000 sq. meters in Gumi’s national industrial complex by 2025.

The plant will be the largest-ever cathode material plant. The capacity is enough to make batteries for about 500,000 high-performance EVs with mileage of 500 km.

The Gumi plant is designed to primarily produce cathode materials with nickel, cobalt, manganese and aluminum, more commonly known as NCMA cathode, which LG Chem has been focusing on its next-generation battery products.

A bird’s eye-view of a cathode materials plant, to be built by LG BCM, a subsidiary of LG Chem. (Photo: Gyeongsangbuk-do)

LG Chem’s NCMA cathode features 90 percent nickel content, enabling higher energy density and strengthening safety.

LG Chem plans to expand its global cathode production by 260,000 tons a year by 2026, from the current 80,000 tons.

The company is also developing technologies to make cobalt-free EV batteries in order to reduce price fluctuation and single crystal cathodes for all solid-state EV batteries.

The upcoming plant will adopt a Gumi-style employment contract. LG Chem plans to push projects such as ramping up cooperation with regional companies for shared growth with the Gumi municipal government, expanding employment and nurturing expertise manpower.

In his congratulatory speech, President Moon said the Gumi-style job creation model will enable Korea to be catapulted to a global battery powerhouse.

“The Gumi-style job creation model is an example of demonstrating labor, management, private and government sectors’ how to cope with the crisis of the global supply chain for shared growth,” President Moon said.

LG Chem Vice Chairman Shin said, “We’ll make efforts to establish the Gumi plant as the world’s best factory to respond to the rapidly growing demand for global electric vehicle battery materials by investing in the world’s top-tier technologies and facilities.”

LG Chem will nurture sustainable, differentiation businesses by strengthening the roles of a key center that will drive future growth momentum, he added.

The market survey company SNE Research reported that the demand for cathode materials is predicted to surge from 990,000 tons last year to 6.05 million tons in 2023 with an annual average growth rate of over 20 percent.