LG Chem, a leading South Korean chemical company, announced Tuesday that the company will invest 10 trillion won ($7.7 billion) in its three business categories of batteries, drugs and sustainable energy solutions.
With the investment, LG Chem aims to post 30 trillion won in annual sales by 2030, the company added.
“There are many challenges ahead. Economic uncertainty remains high, regulations for carbon emissions are elevated, and the renewable energy sector has become increasingly competitive,” said Shin Hak-cheol, LG Chem vice chairman and CEO, during the company's annual shareholders meeting held at the company’s headquarters in Yeouido, Seoul.
“(LG Chem) will be able to step up as a global company when the company tries to overcome the problems at hand and thoroughly prepare for the future,” Shin added.
On Tuesday, Shin reiterated that LG Chem will continue to drive its battery business growth. “(The company) will secure differentiated technologies and expand its client base in the US and Europe where the company operates manufacturing facilities," Shin said.
LG Chem will try to increase efforts in securing raw materials and build a stable supply chain for battery manufacturing. The company will also enhance collaboration on the reuse of battery waste, Shin added.
LG Chem will also nurture its businesses that involve recycling, biomass and environmentally friendly solutions for reducing carbon emissions.
In regards to LG Chem’s drug business, Shin said, “Completing acquisition of AVEO Pharmaceuticals was the first step for the company to become a global pharmaceutical company." Shin noted the firm will help the company secure drug commercialization capability in the US.
Earlier in January this year, LG Chem completed all processes involving the $571 million acquisition of AVEO Pharmaceuticals, a US bio firm focusing on renal cell carcinoma.
Shin added that LG Chem will expand its pipeline to develop innovative medicines in the future.
Meanwhile, LG Chem will target net-zero carbon emissions by 2050 by increasing uses of biomass and hydrogen fuel at its manufacturing facilities, while introducing new technologies to save energy.
The company expects it will be able to achieve a 40 percent reduction in carbon emissions by 2030.