Lotte Chemical’s ‘2030 Green Vision’ Pledges 10 Trillion Won for Hydrogen, Battery Materials

Lotte Chemical Vice Chairman Kim Kyo-hyun speaks at a meeting with reporters in which Lotte Chemical announced “2030 Vision & Growth Strategy” at Lotte World Tower in Jamsil, Seoul, on May 10.

Lotte Chemical plans to pour 10 trillion won into the hydrogen and battery material businesses, which the company has set as future growth engines.

The plan may be construed as Lotte Chemical’s step to lower its dependence on the basic petrochemical businesses such ethylene and propylene through massive investments.

Lotte Chemical announced the 2030 Vision and growth strategies, including the plan, at the Lotte World Tower in Jamsil, Seoul, on May 19 with major executives, including Lotte Chemical CEO Kim Kyo-hyun, concurrently head of Lotte Group’s chemical unit, in attendance.

Citizens look at exhibits on display at “Every Step for Green” exhibition organized by Lotte Chemical at the Arena Plaza of Lotte World Tower on May 19. (Photos: Lotte Chemical)

The company aims to raise sales to 50 trillion won in 2030, about three times more than 18,120.4 billion won in 2021.

To this end, Vice Chairman Kim stressed the need for seizing on mainstay businesses, such as general (basic) petrochemical business; specialty (value-added) materials; hydrogen, battery materials, and bio plastics.

The company plans to raise sales from the general petrochemical business from 11 trillion won in 2021 to 20 trillion won this year.

Lotte Chemical’s mainstay products are ethylene and propylene. The company ranks first in Korea in terms of ethylene production. Lotte Chemical plans to raise sales in the specialty business from current 7 trillion won to 18 trillion won annually.

The company plans to expand the specialty material business, a departure from the structure in which the basic material business accounts for 70 percent of its total sales.

Lotte Chemical targets to raise sales of the new businesses such as hydrogen, battery material and bio plastic to 12 trillion won by 2030.

Specifically, the company plans to produce clean energy of 1.2 million ton by investing 6 trillion won in the hydrogen industry by 2030.

The company plans to channel 4 trillion won in the battery material sector. In the second half of this year, Lotte Chemical plans to establish a locally incorporated entity responsible for overseeing the battery material business to seize on the business in the United States.

The company plans to pour about 60 percent of its investments in the battery material business sector to the U.S. business.

Lotte Chemical made it plain to seize on ESG management. The company is seeking to become the industry’s first petrochemical company in Korea to join RE100. RE100 is a global corporate renewable energy initiative of bringing together companies committed to 100 percent renewable energy electricity.

Vice Chairman Kim said, “The COVID-19 pandemic and carbon neutrality have required petrochemical companies to make fundamental changes.”

Lotte Chemical will realize sustainable development and eco-friendly values by making most of the conventional business capabilities as a driving force, he added.