Korea’s leading chemical manufacturer, LG Chem, said Sunday it is advancing premium nickel-cobalt-manganese, or NCM, materials for electric vehicle batteries to reinforce its technological edge.
As the world’s top NCM supplier, with 106,000 tons sold in 2024, the company is expanding its high-nickel cathode lineup for pouch and cylindrical batteries. High-nickel NCM, which contains about 80 percent nickel, offers higher energy density compared with standard NCM or lithium iron phosphate batteries, enabling longer driving ranges.
LG Chem is now moving toward mass production of ultra-high-nickel cathodes with over 95 percent nickel, alongside single-crystal cathodes, a next-generation material that extends lifespan and improves thermal stability.
Additionally, the company is considering expansion to more affordable cathodes with lower nickel or higher manganese content, in line with the EV market’s shift toward cost-effective models amid slowing sales growth and the planned removal of US EV purchase incentives.
LG Chem’s Tennessee cathode plant, set to begin operations in 2026, will serve as the company's major production hub and global sales center. With an annual production capacity of 60,000 tons, it will become the largest cathode factory in the US that supports the country’s growing battery industry.
While LG Chem still relies heavily on its battery-making subsidiary LG Energy Solution for sales, the company expects the new plant to help generate up to 40 percent of its revenue from other global battery and automaker clients.
To secure a stable supply chain, LG Chem is partnering with global suppliers such as Huayou Cobalt and Piedmont Lithium, exploring collaborations including joint ventures and equity investments.
LG Chem has also formed a joint venture with Korean smelter Korea Zinc to source precursors —metal mixtures used in cathode materials. Separately, in 2025, it developed a method to produce cathodes directly from metals without precursors, an innovation that reduces supply chain risks and lowers costs.
forestjs@heraldcorp.com
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