LG Chem, a leading South Korean chemical company, has announced plans to further expand its battery material production capacity in China, aiming to capitalize on the country’s emphasis on sustainable development and its growing focus on new, high-quality production forces. The company sees significant growth potential in the Chinese market, which plays a central role in driving global economic growth.
Shane YS Hwang, president of LG Chem Greater China, highlighted the company's longstanding presence in China, noting that it was the first South Korean chemical company to invest in the country over 30 years ago. Currently, LG Chem operates more than 10 factories in cities such as Tianjin, Ningbo, and Guangzhou, as well as two technical centers. With over 3,600 employees in China, the company continues to see the market as a key driver of its global sales.
As part of its expansion strategy, LG Chem has collaborated with Chinese battery material producer Zhejiang Huayou Cobalt Co. Ltd to establish a precursor production plant in Quzhou, Zhejiang, focusing on key components for electric vehicle (EV) batteries. Additionally, the company has built a new cathode material production base for energy vehicles in Wuxi, Jiangsu province.
Hwang emphasized that eco-friendly materials, battery materials, and global innovative drugs are LG Chem's three primary growth engines. The company is also leveraging artificial intelligence to drive digital transformation, improve production efficiency, and advance its green and low-carbon operations through smart factory initiatives.
China's commitment to providing high-quality and cost-effective new energy products, including electric vehicles and lithium batteries, has bolstered LG Chem’s operations. The company has formed deep ties with numerous local chemical firms that contribute to its industrial chain, with access to quality raw materials and cutting-edge research and development capabilities.
In addition to its initiatives in China, LG Chem is expanding its global footprint, partnering with Huayou Cobalt to build an EV battery material plant in Morocco, which is expected to start production in 2026. The facility will produce enough lithium iron phosphate cathode materials to power 500,000 entry-level electric vehicles annually. The two companies are also considering expanding their collaboration in Indonesia, which is positioning itself as a key player in the EV and battery manufacturing sectors.
The company’s ongoing investment in China reflects the favorable conditions created by recent policy measures, including the shortened negative list for market entry, the new Foreign Investment Law, and the establishment of pilot free trade zones, all of which are designed to attract foreign businesses to invest in the country.
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