LG Chem CEO vows to support battery parts makers

Shin Hak-cheol, center, vice chairman and CEO of LG Chem, inspects a battery pack case from Dongshin Motech in Haman, South Gyeongsang Province, Friday. / Courtesy of LG Chem

By Baek Byung-yeul

LG Chem will support local battery parts-making companies, emphasizing the importance of achieving mutual growth with its partners to upgrade Korea's competence in the fast-growing industry, Shin Hak-cheol, the company's vice chairman and CEO, said Friday.

"Being dubbed the second semiconductor industry, making batteries for electric vehicles (EVs) has enormous growth potential," Shin said during meetings with local battery parts makers. "To make the country a powerhouse in the sector, seeking mutual growth with local materials, parts and equipment companies in the business is the most important thing we need to do."

Shin visited two companies ― Dongshin Motech in Haman, South Gyeongsang Province, which produces battery pack cases for EVs, and Daegu's Shinsung FA, which manufactures EV battery-making equipment ― to seek ways to boost cooperation with them.

During his visit, Shin listened to their difficulties in doing business and discussed plans to strengthen cooperation.

"By helping these battery parts makers secure global competence, LG Chem will contribute to the development of the country's industry," Shin said.

LG Chem has estimated its battery sales will triple to about 30 trillion won ($25.7 billion) in 2024. This rosy outlook is possible thanks to the high production capability of its partners, it said.

Dongshin Motech has advanced press-forming technology, helping the company to supply quality battery pack cases to carmakers. Shinsung FA will be able to develop new battery cell assembly equipment that will produce battery modules and battery packs on one assembly line, in cooperation with LG Chem.

As part of its growth-sharing plan, the battery-making arm of LG Group has set aside 43.2 billion won to support its parts-making partners. After undergoing review processes, those partners can borrow money at zero interest.

LG Chem also has offered administrative support and consulting services to help its partners expand their businesses abroad.

Dongshin Motech CEO Lim Choon-woo said the company "has been able to diversify its customer base and boost sales since it started to supply its battery pack cases to LG Chem's plants in China and Poland."

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