LG Group chief doubles down on cathode materials as future growth engine

LG Group Chairman Koo Kwang-mo visits LG Chem’s Cheongju factory on April 17. [Photo provided by LG]

LG Group Chairman Koo Kwang-mo emphasized the importance of the global supply chain of cathode materials for electric vehicle batteries, saying that cathode is the core competitiveness and a future growth driver of the group’s battery business during his visit to LG Chem Ltd.’s factory.

The visit comes ahead of Koo’s upcoming business trip to the U.S. at the end of this month.

Koo’s on-site visit was carried out with the aim of actively responding to changes in the global battery materials market being affected by the U.S. Inflation Reduction Act and the European Critical Raw Materials Act, while the electric vehicle battery market is rapidly growing, according to LG Corp., the holding company of LG Group.

Koo visited LG Chem’s Cheongju factory on Monday, carefully examining the cathode production line and checking the production status and global supply chain strategy.

The Cheongju factory, which is LG Chem’s key base for cathode production and global output management, produces cathodes for batteries with a nickel, colbalt, manganese and aluminum chemistry. Cathodes account for over 40 percent of battery production costs and are a key material that determines battery performance, such as capacity and lifespan.

The NCMA cathode material, which incorporates LG Chem’s material technology, increases the nickel content, which determines energy density, while applying highly stable aluminum to increase both the output and stability of the battery.

LG Chem has set a goal of increasing its battery materials business sales, including cathodes, from about 5 trillion won in 2020 to some 20 trillion won in 2027.

The annual output capacity of cathodes from the Cheongju factory is about 70,000 tons this year, which can produce batteries for about 700,000 high-performance EVs. LG Chem currently produces 120,000 tons of cathodes per year globally. When the Gumi production line scheduled to be completed this year begins operation, the capacity will increase to 180,000 tons annually by 2024, which can be used for batteries for about 1.8 million high-performance EVs.