LG Chem deal consolidates battery separator business
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The separator business deal was announced by LG Chem vice-chairman and CEO, Hak-cheol Shin, who recently outlined plans for expansion of the conglomerate's battery materials business. Photo: LG Chem
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South Korea’s LG Chem is taking over LG Electronics’ battery separator business in a deal valued at KRW 525bn (£329m).
LG Chem, the parent company of batteries manufacturer LG Energy Solution (LES), said the acquisition of the chemical electronic material (CEM) subsidiary will help the conglomerate consolidate its role as a global lithium-ion battery leader and make the battery materials business its "new growth engine”.
Under the terms of the inter-group agreement, LG Electronics will transfer battery separator production facilities in South Korea, Poland and China, which have a combined workforce of 800.
LG Chem’s vice-chairman and CEO Hak Cheol Shin said: "While actively fostering the separation membrane business, we will also continuously foster businesses that can realise growth potential to become the world’s largest general battery materials company.”
Construction of the cathode plant, which will be built in the south-eastern city of Gumi, is expected to start towards the end of this year.
Gumi will have an annual production capacity of 60,000 tons, forming part of plans to boost the production of battery materials such as cathodes and separators for the group’s lithium-ion batteries.
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LG Chem, the parent company of batteries manufacturer LG Energy Solution (LES), said the acquisition of the chemical electronic material (CEM) subsidiary will help the conglomerate consolidate its role as a global lithium-ion battery leader and make the battery materials business its "new growth engine”.
Under the terms of the inter-group agreement, LG Electronics will transfer battery separator production facilities in South Korea, Poland and China, which have a combined workforce of 800.
'Growth potential'
LG Chem’s vice-chairman and CEO Hak Cheol Shin said: "While actively fostering the separation membrane business, we will also continuously foster businesses that can realise growth potential to become the world’s largest general battery materials company.”
LG Chem unveiled plans last month to build a new cathode materials plant in South Korea, as part of a KRW 6tn investment to expand its battery materials business for electric vehicles over the next four years.
Construction of the cathode plant, which will be built in the south-eastern city of Gumi, is expected to start towards the end of this year.
Gumi will have an annual production capacity of 60,000 tons, forming part of plans to boost the production of battery materials such as cathodes and separators for the group’s lithium-ion batteries.
Related articles in our archive: