An engineer at LG Energy Solution shows batteries at the company‘s plant in Ochang, North Gyeongsang Province, in this file photo. (LG Energy Solution)
LG Energy Solution said Tuesday it looks to set up its first South Korean-Chinese joint battery cell recycling facilities in China for stable supply of key battery materials from battery manufacturing scraps and used batteries.
LG Energy Solution, Korea’s largest lithium-ion battery manufacturer by production capacity, has signed a memorandum of understanding with Zhejiang Huayou Cobalt to launch a joint venture for the new recycling plant by the end of this year, according to its release. LG Energy Solution did not disclose details about the deal terms.
The facilities will span across China’s Jiangsu Province. Its pre-treatment plant in the city of Nanjing will be dedicated to collecting and processing waste and used batteries. The post-treatment plant will be located in Quzhou and will be used to extract cathode materials such as nickel, cobalt and lithium. The extracts will go to LG Energy Solution’s battery cell plant in Nanjing.
LG Energy Solution did not disclose the estimated amount of materials to be extracted from the facilities.
The move will be crucial for securing key materials and stabilizing battery prices amid supply chain disruptions, while at the same time strengthening its commitment to a green initiative, LG Energy Solution Vice Chairman Kwon Young-soo said in a statement.