South Korea’s LG Chem will invest KRW10trn ($8.7bn) through 2025, ploughing the majority of the investment into battery materials for electronic vehicles (EV) amid the rising trend for a move away from internal combustion engines.
LG Chem, which supplies batteries to Tesla and General Motors, will invest KRW6trn in boosting production of battery components. It plans to increase its annual anode production from 40,000 tonnes in 2020 to 260,000 tonnes by 2026.
“The standard for measuring competitiveness in the business world should be based on sustainability for revenue and operating profits, and this should be reflected in all business processes, strategy, and investment,” LG Chem CEO Hak Cheol Shin said.
“From this perspective, our business portfolio will be overhauled toward being based on ESG [Environmental, Social and Governance criteria], while pursuing sustainable growth.”
The company is also preparing a joint venture with a mining company to secure raw materials needed for anode production, it said in a statement.
It will also focus on research and development as it seeks to maintain its advantage in battery materials, a market which is projected to grow from KRW39trn this year to KRW100trn by 2026.
Aside from battery-related investments, LG Chem will invest KRW3trn in sustainable petrochemical products such as biodegradable polymers used in agricultural and disposable films. The company will also invest KRW1trn into developing medicines.
“This will be the most revolutionary change since the establishment of the company that will upgrade the value and sustainability of LG Chem, and tangible achievements will become available from the second half of this year,” said Shin.