LG Chem will acquire LG Electronics’ battery separator business unit.
The South Korean chemical said on Thursday that it will acquire LG Electronics’ chemical and electronics materials (CEM) business for 525 billion won.
The acquisition means LG Chem will now have technologies in cathode, anode, separators and electrolyte, the four components a battery.
LG Electronics’ CEM business manufactures materials used in the production of batteries and display panels.
It has production facilities in South Korea, China and Poland. It employees around 800 people.
LG Chem said it will acquire all assets of the business, including its employees.
The company will grow the business to be worth trillions of wons, it claimed.
According to market research firm SNE Research, battery separator market is expected to grow 27.9% on average from 2021 to 2025. The market will grow to be worth 4.1 trillion won to 11 trillion won over the time period, the firm said.