LG Chem said on Wednesday that it plans to form a joint venture with Japan’s Toray to build a battery separator factory in Hungary.
The pair have agreed to form LG Toray Hungary Battery Separator Kft, with each owning half of the stakes of the new company.
LG Chem will acquire 20% more stake from Toray after 30 months to secure managerial rights of the joint venture, the South Korean chemical firm said.
The pair are planning to spend over 1 trillion won on the joint venture.
The factory run by the new company will be placed on Toray’s existing factory in Hungary.
It will aim to secure an annual production capacity of 800 million meter square of separators by 2028.
It will be supplying its separators to LG Energy Solution, LG Chem’s battery-making subsidiary.
In July, LG Chem had acquired LG Electronics’ battery separator business, which has production facilities in South Korea, China and Poland, with a staff of 800.
Meanwhile, LG Chem recorded 10.61 trillion won in sales and 726.6 billion won in operating income during the third quarter.