LG Chem, headquartered in South Korea, has announced a joint venture (JV) with Kemco, a subsidiary of Korea Zinc Co. Ltd. based in Seoul, dedicated to recycling precursor materials to help secure a stable supply of components for electric vehicle (EV) batteries.
The companies say the JV constructed as an exclusive line for nickel, cobalt, manganese and aluminum (NCMA) precursors that will be used for next-generation EV batteries. The plan is to invest 200 billion KRW (approximately $159 million) into a facility with expected annual production capacity of 20,000 tons of recycled precursors materials for EV battery cathodes and anodes.
Construction is slated to begin in July on the plant, which will be owned 51 percent by Kemco and 49 percent by LG Chem. The project is expected to be completed by 2024 in the Onsan Industrial Complex in Ulsan and will supply the LG Chem Cheongju Cathode Materials Plant.
The companies say the JV will produce precursors not only using metals produced and supplied by Kemco, but also recycled metals extracted from waste scrap and waste batteries. They add that the particular recycling process of this JV combines wet and dry processes to maximize the metal recovery rate compared with existing processes.
LG Chem says the JV also allows it to receive a stable supply of high-quality nickel sulfate while Kemco will procure a stable client in the Korean market as it expands its battery materials business portfolio.
Kemco has a nickel sulfate production capacity of 80,000 tons per year and, through nonferrous metal smelting technologies of its parent company Korea Zinc, possesses technologies for extracting core raw materials for batteries such as nickel, cobalt and manganese.
"This joint venture is very meaningful in that our platform is becoming strengthened to become the world's best comprehensive battery materials company," LG Chem CEO Hak Cheol Shin says. "We will achieve ceaseless growth in the eco-friendly battery materials business through bold investments and collaboration."
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