Toray Industries mulls sale of stake in battery separator JV

[Graphics by Song Ji-yoon]

The global value chain for electric vehicles saw a full-scale restructuring as Toray Industries, Inc. looks to sell its stake in a Hungarian battery separator manufacturing joint venture. Founded in collaboration with LG Chem Ltd., the business is estimated to be worth 1 trillion won ($728 million) and LG Chem is reportedly one of potential buyers.

Sources familiar with the matter said Toray Industries initiated the process to sell its separator business, including a separator plant in Gumi, south of Seoul, and the Hungarian separator plant that it built in 2022 as a JV with LG Chem.

The reports came after SK innovation Co. began selling its stake in SK ie technology (SKIET) Co. Ltd, the fourth-largest battery separator manufacturer globally.

For its part, the market estimates for the Toray Industries sale to be around 1 trillion won in value. The company has already reportedly appointed a Japanese global investment bank to manage the sale process and is reportedly in contact with potential buyers.

“LG Chem plans to acquire an additional 20 percent stake in the Hungarian joint venture from Toray Industries by the end of 2024,” a source said, adding, “It is likely that LG Chem will acquire the remaining 30 percent later.”

However, Toray Industries denied reports of a sale to LG Chem.