LG Chem form 2x JVs in China supporting 400K EV packs/year
LG Chem will form two joint ventures with China’s Zhejiang Huayou Cobalt to secure supplies of cobalt for Li-ion batteries. Huayou Cobalt is the world’s largest producer of refined cobalt, delivering 20,000 tons in 2017. LG Chem will invest KRW 239.4 billion (USD 224 million) by 2020 to establish two joint ventures: one for precursor materials, the other for cathode materials. The precursor joint venture will be established in Zhuzhou City, Zhejiang Province, China, and LG Chem will take a 49% stake. The cathode JV will be established in Wuxi City, Jiangsu Province, China, and LG Chem will secure a 51% stake. The joint ventures will start producing about 40,000 tons/year of precursor and cathode materials from 2020. The 40,000-ton capacity is enough to manufacture about 400,000 battery packs for EVs with about 320 km range (~200 miles). LG Chem said it plans to increase ca...