LG Chem and Korea Zinc are planning to form their joint venture sometime in April, TheElec has learned.
The venture will manufacture precursors, which will be used to manufacture cathode by LG Chem.
This cathode will then be used by LG Energy Solution to manufacture batteries.
On Wednesday, LG Chem vice chairman Shin Hak-cheol said the company plans to spend over 4 trillion won this year in its new growth businesses, which includes battery materials.
Around half of that budget is expected to go to battery materials, sources said, including cathodes, binders, conductive agents and separators.