LG Chem invests 24 billion KRW in battery recycling company Jaeyeongtec

Share Acquisition Agreement Signed on the 21st
Targeting Establishment of North America Recycling Joint Venture by the End of 2023

[Asia Economy Reporter Donghoon Jeong] LG Chem is accelerating its entry into the North American battery recycling market by partnering with Jaeyoung Tech, a company specializing in recycling used batteries.

On the 21st, LG Chem announced that it signed an equity investment agreement worth 24 billion KRW with Jaeyoung Tech at the LG Twin Towers in Yeouido, Seoul.

Based on this equity investment, the two companies plan to establish a battery recycling joint venture in the North American region by the end of 2023. LG Chem will lead the overall business, including building the business model, while Jaeyoung Tech will be responsible for technical aspects such as plant design. They also plan to enhance the business by collaborating with local companies that have secured supply chains in North America.

Jaeyoung Tech, established in 2016 and located in Gumi, Gyeongsangbuk-do, is a company specializing in battery recycling. It possesses technology to extract high-purity lithium from lithium waste (scrap) left over from secondary battery manufacturers or from spent batteries.

In the existing industry, the method involved immersing batteries in liquid to dissolve and sequentially extract manganese, cobalt, nickel, and finally lithium. A chronic problem was that impurities formed in the liquid after dissolving various substances, lowering the purity of lithium.

Unlike the existing method, Jaeyoung Tech applies heat to the battery materials to extract lithium first, and manganese, cobalt, and nickel are processed in a subsequent step. This process is simpler, maintains the purity of manganese, cobalt, and nickel at the same level as the existing method, and can extract high-purity lithium. The lithium recovery rate is also evaluated as world-class, exceeding 85%.

Previously, LG Chem led the market in battery recycling by investing 60 billion KRW in Li-Cycle, the largest battery recycling company in North America, together with LG Energy Solution last year.

Lee Sang-hyup, Executive Director of Business Strategy at LG Chem, said, "Through this equity investment, we will lay the foundation for entering the global battery recycling business. We will secure competitiveness with differentiated technology and take the lead in building a circular economy in the future."