[Asia Economy Reporter Suyeon Woo] LG Chem has announced plans to discuss the establishment of joint ventures with multiple global automakers to expand production of batteries for electric vehicles.
On the 16th, Shin Hak-cheol, Vice Chairman of LG Chem, said in an interview with a foreign media outlet, "In addition to the joint ventures already announced, we are in discussions with several automakers about establishing joint ventures."
LG Chem, the number one battery company in Korea, established a joint venture with China's Geely Automobile last year, and also set up a battery cell joint venture with the U.S. automaker GM, building a battery production facility in Ohio, USA. Recently, it has been reported that LG Chem is also reviewing the establishment of an electric vehicle battery joint venture with the domestic automaker Hyundai Motor Company.
Vice Chairman Shin mentioned that LG Chem batteries are supplied to Tesla Model 3 through the Nanjing plant in China, stating, "We have started supplying batteries to Tesla, which is a good start, and we hope for more cooperation between the two companies." However, he dismissed the possibility of establishing a joint venture with Tesla.
Last month, LG Chem held an emergency board meeting and decided to establish a new company dedicated to the battery business. The existing battery division will be spun off to form a new company tentatively named 'LG Energy Solution,' which is planned to launch on December 1.
Vice Chairman Shin emphasized that the spin-off of the battery business is an essential process for the stable growth of the future car battery business. He also added that they are scouting locations for a new battery factory in Europe and are considering building new chemical production facilities in the U.S. and Southeast Asia.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
