LG Chem to Build World’s Largest Single Cathode Material Plant for EV Batteries

LG Chem will construct the world’s largest plant exclusively for cathode materials for EV batteries in Gumi City in South Korea. It plans to invest approximately 500 billion KRW ($419 million) on a site spanning across over 60,000㎡ by 2025.

It’s aiming for annual cathode material production capacity of 60,000 tons.

This is the world’s largest scale for a single plant, and is enough to produce batteries for about 500,000 high-performance fully electric vehicles (EV, 500km range) every year. 

LG Chem says it will expand its production capacity from the current 80,000 tons to 260,000 tons by 2026, and is current developing cobalt-free technologies, which does not use cobalt that has high price volatility, as well as single crystal cathodes for next-generation solid-state batteries.

Construction on the the Gumi Plant, will build an exclusive line for NCMA (Nickel, Cobalt, Manganese, Aluminium) cathode materials that will be used for next-generation EV batteries, is now underway.

South Korean President, Moon Jae-in, and LG Chem Chief Executive Officer, Hak Cheol Shin attended a groundbreaking ceremony at the Gumi Convention Center.

President Moon Jae-in, says:  “Korea will become a battery superpower through the Gumi job initiative. The start of the construction for the plant that will create jobs in Gumi is an example on how local labor, management, private and public sectors can work together to respond to the global supply chain crisis.”

Chief Executive Officer, Hak Cheol Shin, adds: “We will strive to make this the best plant that can respond to the rapidly growing global demand for EV battery materials by investing the world’s greatest technologies and facilities. We will strengthen its role as a key base for accelerating LG Chem’s future growth engine to foster it as a sustainable and differentiated business.”

LG Chem is also planning to team up with Gumi City and assertively pursue local activities such as strengthening cooperation with local businesses for mutual growth, creating jobs and fostering experts, as well as nurturing teenagers and college students.