LG Group to invest $1.5 billion to groom clean tech biz as next growth engine

[Source: LG Group]

South Korea's fourth-largest conglomerate LG Group will spend more than 2 trillion won ($1.5 billion) on clean technology business over the next five years to foster the group’s sustainable growth with a focus on the environment and common community goals for the sustainability of the future generations.

According to LG on Wednesday, LG Chairman Koo Kwang-mo and the executives of LG affiliates have set a goal to groom clean technology business as its next growth driver at a time when the world is accelerating its move towards net zero emissions target.

Clean technology refers to a process, product or service that aims to protect the environment with more efficient, cleaner, renewable energy sources and achieve decarbonization.

As part of its efforts, LG will develop eco-friendly plastics, waste plastic, and battery recycling technologies, as well as renewable energy-based carbon reduction technologies such as solar and hydrogen.

“It is important to lead a development of technologies that can innovate customer experiences,” said Koo. “Let’s set up a clear goal and thoroughly review R&D investment size and time frame that lead us to win the competition.” Koo also emphasized the importance of thinking outside the box when recruiting experts in the new growth driving sector.

LG Group has allocated 2 trillion won to foster the growth of clean technology business. Under the investment plan, LG Chem has already set up a joint venture (JV) with U.S. grain company ADM to construct a polylactic acid biodegradable plastic (PLA) production plant with an annual capacity of 75,000 tons and built a new facility at its Daesan plant to produce biomaterials and biodegradable plastics.

LG Energy Solution and LG Chem jointly invested 60 billion won in December last year to secure a 2.6 percent stake in battery recycling company Li-Cycle and signed a contract with Li-Cycle to secure a supply of 20,000 tons of nickel sulfate, a key component of lithium-ion battery production, over 10 years beginning 2023.

LG Chem in June established a joint venture with nickel sulfate manufacturer Kemco to produce precursors using recycled metals from waste batteries.

LG Chem developed the world’s first white post-consumer recycled plastics (PCR) and has begun developing transparent recycled plastic products. It will also use the methane produced at the naphtha cracking center (NCC) in Daesan to construct a plant with a capacity to produce 50,000 tons of hydrogen fuel annually.

Shares of LG traded up 0.13 percent at 79,400 won during Thursday morning trade.

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