LG Chem, a major battery maker in South Korea, said Sunday it plans to invest 2.7 trillion won ($2.3 billion) in capital expenditure, a 40 percent increase on-year, with the aim of advancing its business structure and strengthening research and development.

The company said its base material unit aims to be in the global top three by expanding the production capacity of elastomer to 290,000 tons by 2018. Elastomer is a high-value-added synthetic resin that features both rubber and plastic. The firm said it has secured key technologies for elastomer, which are metallocene catalysts and process technologies.

LG Chem also recently invested 25 billion won in its carbon nanotube plant capable of annually producing 400 tons in Yeosu city. The plant, which began operating in January, is predicted to fully run by the end of next year.

As for the company’s electronic information material unit, it plans to reinforce its existing businesses, such as Polaroid, and strengthen new business in water treatment and functional films. LG Chem signed a supply deal with the Oman government for water treatment in June last year and the company plans to explore new markets for household and industrial filters utilizing its plant in Cheongju. 

Meanwhile, LG Chem’s life sciences business plans to focus on three businesses: metabolic disease, bio medicines and vaccine. The company plans to foster its new metabolic disease medicine Zemiglo, which was developed in 2012 with an investment of 47 billion won.

The firm also plans to move up the release date of the combined vaccine of diplococcus pneumoniae and hex vaccine by undergoing clinical trials at home and abroad. They are also expected to patriciate in international bidding markets including the United Nations International Children’s Emergency Fund and Pan American Health Organization.

As for the company’s battery division, LG Chem said it aims to retain its No. 1 position in third-generation electric vehicles, which can travel for more than 500 kilometers. The company also plans to aggressively make a foray into the ESS battery market with its unique performance and cost efficiency.