LG Chem announced its business strategy on May 16 to become a top global battery materials company and its plans for three new growth engines by 2030.
LG Chem CEO Shin Hak-cheol said in a keynote speech at the Bank of America 2023 Korea & Global EV/EV Battery conference held at the Grand Hyatt Seoul on May 16, that LG Chem aims to grow its battery materials sales sixfold to 30 trillion won ($25.5 billion) by 2030, from 4.7 trillion won ($3.9 billion) in 2022.
In detail, LG Chem’s sales from the three sectors, which the company is counting on to power its growth, battery materials, sustainability business and innovative new drugs, is expected to make up 57 percent of the company’s total sales in 2030.
The company expects they will reach 40 trillion won, or $30 billion.
The three areas accounted for 21 percent (6.6 trillion won, or $4.9 billion) of the company’s sales in 2022. This will mark a turning point in LG Chem’s business as it aims to become a “top global science company”, shifting from a petrochemical-centric portfolio.
“Despite under an emergency management amidst the never-before pandemic and geoeconomic conflicts, LG Chem has been proactively fostering new growth powers based on global megatrends and strategies on sustainability,” said Vice Chairman Shin from LG Chem.
“You will be able to see and feel LG Chem’s axis moving towards the next big three engines: battery materials, sustainability businesses and innovative new drugs.”
Breaking Through the Global Industry Transformation Era
LG Chem plans to leap forward as the world’s leading battery materials provider with 30 trillion won ($25.5 billion) in sales by 2030, backed by a compound annual growth rate of 26%.
LG Chem also plans to cultivate its business in additional battery materials such as separators and carbon nanotubes (CNTs), in addition to the already-prominent cathode materials.
LG Chem will also actively promote R&D efforts in new materials including pure silicon anode materials and solid-state battery electrolytes.
In particular, LG Chem is set to secure its global leadership in high-nickel cathodes around three key areas - market, technology and metal sourcing.
LG Chem plans to strengthen its market leadership by establishing a global quadrilateral production system, connecting Korea, China, the U.S. and Europe, to make cathodes.
This will help LG Chem expand its production capacity from 120,000 metric tons in 2023 to 470,000 metric tons by 2028. 40 percent of LG Chem’s clients will be new global companies besides its subsidiary, LG Energy Solutions.
LG Chem will also tighten its technology leadership by expanding its high-nickel cathode product lineup for pouch-type and cylindrical batteries, mass-producing ultra-high-nickel cathodes with nickel content of 95 percent and extending the application of single crystal cathode materials technology in the sector.
LG Chem is also actively considering expanding its offerings with cost-efficient cathode materials including high-voltage mid-nickel (Mid-Ni), lithium iron phosphate (LFP) and manganese-rich (Mn-Rich) to meet customer needs and target the growing mass market for electric vehicles (EVs).
Furthermore, LG Chem is cementing its global partnerships to secure its metal supply chain. In China, North America, Australia and Korea, LG Chem is carrying out various initiatives such as establishing joint ventures (JVs) for precursors, signing lithium contracts, and making equity investments with major players including Huayou Cobalt, Piedmont Lithium and KEMCO.
LG Chem also projects to expand its business in additional battery materials such as CNTs, anode binders and cathode dispersants by seeking opportunities for partnerships based on LG Chem’s technological advantages.
LG Chem’s CNTs, for instance, has top-notch quality as it uses cobalt-based catalysts made with LG Chem’s proprietary technology which helps lowering the content of magnetic impurities that can affect battery quality.
_신학철 LG화학 부회장 기조연설.jpg)
