LG Chem has completed its first overseas anode factory in China, the company said on Tuesday.
The factory, called Leyou New Energy materials, at Wuxi is a joint venture with local company Huayou Cobalt.
Construction for the factory began in February 2019. It will produce 45,000 metric tonnes of anode materials per year.
The factory will also produce precursors needed for the anode materials. In total, it will produce some 100,000 metric tonnes of materials.
LG Chem invested 272 billion won in the first half of 2020. In total, the South Korean battery giant invested 324 billion won into the factory. LG Chem vice president Park Hong-kyu will head the joint venture.
The joint venture will supply anode materials to LG Chem’s battery factory in Nanjing, 180 kilometers away from Wuxi.
LG Chem will now speed up the expansion of its second factory at Nanjing. The buildings are already in place. The company has placed orders for equipment to put inside.
The company plans to invest 1.9771 trillion won to expand the factory. 892.7 billion won has been spent out of that total during the first half of 2020.
LG Chem plans to build another anode factory in South Korea next year. It plans to localize the supply of them by 50% in the long-term.
Back in October, 2016, the company acquired GS EM’s noade material business but local supply of them still accounts for less than 20%.
In 2018, LG Chem used 100,000 metric tonnes of anode materials. This year this will increase to over 300,000 metric tonnes.