[Asia Economy Reporter Oh Hyung-gil] The precursor joint venture for cathode active materials, a core material for secondary batteries, promoted by LG Chem and Korea Zinc, is expected to be established as early as the first half of the year.
According to industry sources on the 24th, LG Chem and Korea Zinc have entered the final stages of discussions to establish the precursor joint venture company. The two companies signed a business agreement for the establishment of the joint venture in July last year.
With the establishment of the joint venture, LG Chem will secure a supply channel for core materials, and Korea Zinc is expected to create synergy by laying the groundwork for entering new businesses.
The two companies are discussing plans to start construction of a precursor factory with an annual capacity of 20,000 tons in Onsan Industrial Complex within the year and to begin full-scale production from 2024.
Precursors are one of the key materials for batteries and account for 70% of the material cost of cathode active materials. The main component is nickel, and until now, domestic battery cathode material companies have largely depended on imports for core raw materials.
An LG Chem official explained, "We are reviewing the business plan, and the shareholding ratio, investment scale, and establishment of the joint factory have not yet been finalized."
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