KBE (Korea Battery & ESG) Fund Key Investor Participation
Vice Chairman Shin Hak-cheol Secures Future Growth Engine by Strengthening Domestic ESG Industry Ecosystem
[Asia Economy Reporter Hwang Yoon-joo] LG Chem is participating as a key investor in an ESG (Environmental, Social, and Governance) promising company development fund, aiming to discover and nurture domestic companies in the battery materials and eco-friendly materials sectors.
On the 11th, LG Chem announced that it will invest 150 billion KRW as an Anchor Limited Partner in the KBE (Korea Battery & ESG) fund operated by IMM Credit Solutions, a domestic private equity firm.
This is the first time LG Chem has participated as a key investor in a fund established by an external asset management company. The KBE fund plans to raise more than 400 billion KRW and aims to discover domestic companies with strong technology and growth potential in ESG-related industries and nurture them through investment.
The primary areas under investment review include ▲ cathode and anode material manufacturing, recycling of key metals for electric vehicle batteries, which are core battery materials ▲ eco-friendly industrial materials such as recycling of polymer products including waste plastics and bioplastic technologies.
Combining LG Chem’s industrial and technological expertise with IMM Credit Solutions’ capabilities in company analysis and discovery is expected to provide a broad perspective on the ESG-related industry and identify investment opportunities from the early stages of promising companies.
To accelerate ESG management, LG Chem has selected and is nurturing next-generation growth engines such as ▲ battery materials including cathode materials ▲ sustainable solutions like bioplastics ▲ e-mobility materials including lightweight and electronic components.
IMM Credit Solutions is a 100% subsidiary of IMM PE, a leading domestic private equity firm, and is composed of professionals with investment experience in electric vehicle materials and the chemical industry, as well as a wide network of related advisory firms, experts, and companies.
LG Chem is currently conducting recruitment procedures to select a triple-digit number of personnel related to battery materials this year, aiming to foster advanced materials. The production capacity of cathode materials, a representative battery material, is planned to expand from 40,000 tons last year to 260,000 tons by 2026.
Additionally, the CTO division plans to hire about 100 researchers this year in sustainability fields such as eco-friendly products like biodegradable plastics and carbon neutrality technologies. LG Chem continues to develop eco-friendly PCR (Post-Consumer Recycled) plastics and biodegradable plastic products, and aims to start production of bio-based PO (polyolefin), SAP (superabsorbent polymer), and ABS (high value-added synthetic resin) in the second half of this year.
Vice Chairman Shin Hak-cheol stated, "This investment will serve as a foundation for LG Chem to strengthen the ESG industrial ecosystem together with promising domestic small and medium-sized enterprises, as well as continuously discover future growth engines."
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