LG to Invest Over 2 Trillion KRW in 'Cleantech' Including Bio and Used Battery Recycling Over 5 Years... Koo Kwang-mo Says "Let's Do Winning R&D"

Over 5 Years, More Than 2 Trillion KRW Invested Domestically and Internationally in the 'Cleantech' Sector

Carbon Reduction Targets Set and Executed by Each Affiliate
Q3 ESG Management Performance Report Published

CEO Koo Kwang-mo Visits LG Chem R&D Center in Magok on the 28th
Inspects Bio Materials and Waste Plastic Recycling Technology Development
"Selected Customer Experience Innovation Technology... Let's Achieve Winning R&D"

Koo Kwang-mo, CEO of LG Corporation, listens to an explanation about technology that reduces carbon using catalysts at LG Science Park in Magok, Seoul, on the 28th. (Photo by LG)

[Asia Economy Reporter Moon Chaeseok]

"It is important to proactively select technology fields that can innovate customer experience. Let's clearly establish the desired image and carefully review and execute the scale and speed of research and development (R&D) investments that can win in competition."

Gu Kwang-mo, CEO of LG Corporation, emphasized this while visiting the LG Chem R&D research center at LG Science Park in Magok, Seoul, citing 'eco-friendly clean tech' as the group's future growth engine.

On the 29th, LG announced that it will invest more than 2 trillion KRW over five years in the eco-friendly clean tech business. The company plans to actively engage in bio materials, recycling of waste plastics and waste batteries, and carbon reduction. The clean tech that CEO Gu inspected on-site the day before refers to technologies necessary to achieve corporate environmental goals such as decarbonization and the establishment of a circular economy system.

Koo Kwang-mo, CEO of LG Corporation, listens to an explanation about next-generation battery materials at LG Science Park in Magok, Seoul, on the 28th. (Photo by LG)

According to LG, during the ongoing mid- to long-term business strategy review meetings since the end of last month, discussions related to the petrochemical business recently led CEO Gu and the management team to agree on expanding investments and strengthening capabilities in the clean tech sector.

At the LG Chem R&D research center, CEO Gu carefully examined bio raw material exhibits and communicated with employees. He checked the investment plans in the clean tech field and the status of R&D personnel, paying close attention to areas requiring support at the holding company level. On-site, CEO Gu requested, "Please consider ways to enhance recruitment competitiveness by breaking away from existing practices so that many excellent technical talents can gather."

LG announced plans to invest more than 2 trillion KRW domestically and internationally in the clean tech field over the next five years. Through collaboration with global clean tech companies, equity investments, and mergers and acquisitions (M&A), LG aims to provide differentiated customer experiences and discover new business opportunities.

First, LG will promote ▲development of eco-friendly plastics using bio materials ▲securing recycling technologies for waste plastics and waste batteries ▲strengthening carbon reduction technologies based on new and renewable energy such as solar power and hydrogen. Through this, LG plans to shift the petrochemical business paradigm toward high value-added clean tech businesses. With environmental regulations expected to tighten, especially in Europe, managing carbon emissions not only from companies but also from partners, logistics, and the entire product lifecycle, LG has decided to proactively secure clean tech technologies.

Koo Kwang-mo, CEO of LG Corporation, listens to an explanation about eco-friendly bio raw materials at LG Science Park in Magok, Seoul, on the 28th. (Photo by LG)

Specifically, in the bio materials sector, LG Chem is establishing a joint venture (JV) with the U.S. grain company ADM to build a 75,000-ton biodegradable plastic (PLA) plant in the U.S. by 2025. LG Chem will also build bio raw material production facilities and biodegradable plastic (PBAT) production facilities at its Daesan plant.

In the waste battery recycling sector, LG Energy Solution and LG Chem invested 60 billion KRW in December last year to acquire a 2.6% stake in 'Li-Cycle,' the largest battery recycling company in North America, and signed a contract to supply nickel sulfate, a key battery material, for 10 years. LG Chem is establishing a joint venture with Kemco, a domestic company producing nickel sulfate, to utilize metals recovered from waste batteries for precursor production. The company is accelerating the establishment of a circular ecosystem from battery production to waste battery recycling.

LG Chem is rapidly enhancing its capabilities in recycled plastics development. For example, after commercializing the world's first 'white' recycled plastic, which is difficult to realize with recycled plastics, it has started developing transparent recycled plastic products. This is to proactively respond to customer demand. In the carbon reduction technology field, LG Chem announced on the 20th that it plans to build a plant producing 50,000 tons of hydrogen fuel annually using methane generated from the naphtha cracking center (NCC) process at Daesan, Chungnam.

LG will also accelerate ESG (Environmental, Social, and Governance) management. Each affiliate is setting eco-friendly goals such as RE100 transition and carbon neutrality to achieve carbon reduction. Through the ESG committee held the day before, LG established and decided to implement an ESG promotion strategy. In the second half of the year, LG plans to concretize mid- to long-term carbon reduction strategies and overseas carbon reduction business development. Additionally, in the third quarter, LG will publish a report detailing the direction, promotion strategy, and performance of ESG management.