Myeong-seok Chae, Gounee Yang

Global Economic News

SOUTH KOREA’S LG Chem Ltd. said Tuesday it plans to invest about 500 billion won (US$418.52 million) by 2025 to build a cathode material production plant for electric vehicle batteries in Gumi, South Korea.

The plant will help LG Chem secure cathode material production capacity of 60,000 tons per year, and is expected to be one of the largest cathode material plants in the world when completed, LG Chem said.

The cathode material, which accounts for about 40 percent of the battery production cost, is a key material that determines the core performance such as capacity and lifespan of a battery.

The Gumi plant will be constructed as a NCMA (nickel, cobalt, manganese and aluminum) dedicated production line for next-generation electric vehicle batteries, in which LG Chem is currently focusing on.

The NCMA cathode material is a product that combines LG Chem’s material technologies.