LG Chem Expands Battery Material Production in China Amid Green Growth Opportunities
South Korea’s LG Chem has announced plans to expand its battery material production capacity in China, highlighting the nation’s central role in the company’s global strategy. Shane YS Hwang, president of LG Chem Greater China, emphasized the importance of the Chinese market, which has significantly contributed to LG Chem’s global sales and continues to offer immense growth potential.
LG Chem, the first South Korean chemical company to invest in China following the establishment of diplomatic ties in 1992, has maintained a strong presence in the market for over 30 years. The company operates more than 10 factories across cities such as Tianjin, Ningbo, and Guangzhou, along with two technical centers. Recent developments include a plant established in collaboration with Zhejiang Huayou Cobalt Co Ltd in Quzhou, Zhejiang province, for producing battery precursors and a new energy vehicle cathode material production base in Wuxi, Jiangsu province.
Hwang stated that LG Chem’s three key growth engines are eco-friendly materials, battery materials, and innovative pharmaceuticals. The company is integrating digital transformation and green, low-carbon operations by adopting artificial intelligence technology and building smart factories to enhance production efficiency.
China’s focus on sustainable development and green energy has further reinforced LG Chem’s commitment to the region. Localized partnerships with Chinese chemical companies provide high-quality raw materials and technical expertise, strengthening LG Chem’s production capabilities. Hwang also highlighted the global green shift driven by China’s cost-effective production of electric vehicles, lithium batteries, and photovoltaic products.
In 2022, LG Chem signed a memorandum of understanding with Huayou Cobalt to establish a joint electric vehicle battery material plant in Morocco. Scheduled to commence production in 2026, the facility aims to produce 50,000 metric tons of lithium iron phosphate cathode materials annually, sufficient for 500,000 entry-level electric vehicles. The partnership extends to Indonesia, where the companies are exploring opportunities in battery manufacturing and precursor production.
China’s recent opening-up measures, such as the Foreign Investment Law and pilot free trade zones, have created favorable conditions for foreign businesses like LG Chem to expand operations. Zhang Jianping, deputy director of the Chinese Academy of International Trade and Economic Cooperation, underscored the importance of these reforms in attracting investments and fostering industrial collaboration.
