S. Korea's LG Chem to build battery precursor plant with China's Huayou Cobalt

SEOUL -- South Korea's LG Chem said on Monday that it joined hands with China's Huayou Cobalt to build a battery precursor plant in the Saemangeum National Industrial Complex, a reclaimed area around 280 km Southwest of the capital Seoul.

The South Korean chemical giant said it will sign a memorandum of understanding (MOU) with the Chinese mining company on Wednesday in an agreement to establish a joint venture and invest 1.2 trillion won ($915.3 million) in total by 2028 to build the precursor factory.

The construction of the new plant will begin this year and have a 50,000-ton annual production capability by 2026, planning to double its annual precursor production to 100,000 tons with newly added facilities.

About 100,000 tons of precursors is enough to make cathodes for over 1 million electric vehicles, the South Korean company said.

A precursor, or a compound consisting of nickel, cobalt and manganese, is essential to produce cathodes which are one of the key secondary battery materials determining the power and range of batteries.

The precursor plant will be equipped with a metal refiner to produce metal sulfates that are the key ingredients for precursor production, the South Korean company added.