LG Chem said on Wednesday that it plans to spend 6 trillion won into its battery business by 2025.
It will spend a total 10 trillion won on what it calls its three new growth engine by that year, company vice chairman Shin Hak-cheol said.
LG Chem will spend 6 trillion won into its battery business, 3 trillion won into its sustainable eco-friendly business and 1 trillion won into its pharmaceutical business.
Shin also said that the company’s battery making subsidiary LG Energy Solution could go public this year at the earliest.
LG Chem will retain a stake of 70% to 80% of LG Energy Solution even after its IPO, the vice chairman said, and it will have no problem securing around 2 trillion won in funding for the batter making subsidiary.
The 6 trillion won earmarked for its battery business includes spending in cathodes, separators, binders and carbon nanotubes.
LG Chem is planning to secure an annual cathode production capacity of 260,000 metric tonnes by 2026.
The firm plans to expand its capacity of NCMA (nickel, cobalt, manganese and aluminum oxide) cathode, which will be used in Gen 3 batteries that can offer over 600km in travel distance per charge for electric cars.
LG Chem will construct related factory in Europe or the US. It is also preparing to form a joint venture with Korea Zinc to procure precursors for cathodes.
The 3 trillion won earmarked for its eco-friendly business will be spent on bio materials, recycling and new energy.
LG Chem is planning to begin mass production of super absorbent polymer that has received the certificate for bio-balance from ISCC Plus. It will be supplied to customers in the US and Europe. The polymer is used diapers and other hygiene products.
LG Chem is also developing biodegradable plastic and solar panel technology.
For pharmaceuticals, the company said it aims to develop at least two new medicine by 2030 and expand to the US and Europe. It will expand medicine in clinical trial from the current 11 to 17 by 2025. LG Chem will be open to M&A and joint ventures. It will also form a research subsidiary in the US.
Shin said over two thirds of LG Chem’s spending by 2025 will be spent on these new business areas, with 60% being spent in South Korea and 40% abroad. LG Chem was no longer a conventional chemical firm but a science company, the vice chairman said.