LG chairman stresses importance of maintaining competitive edge in cathode business
LG Group Chairman Koo Kwang-mo walks with staffers at LG Chem's Cheongju plant in North Chungcheong Province, during his visit to the global cathode production line, Monday. Courtesy of LG Group
By Kim Jae-heun
LG Group Chairman Koo Kwang-mo stressed the importance of expanding the company's cathode production during his recent visit to LG Chem's plant, in order to capitalize on the rapidly growing global demand for electric vehicle batteries, according to company officials Tuesday.
Koo made the visit to LG Chem's cathode-producing factory in Cheongju, North Chungcheong province, Monday, to check the global battery supply chain. He emphasized the importance of the material in the value chain.
“As cathodes are a key material in the second battery business and a new growth engine, it is important that we have a leading position with the material in the global market,” Koo said during his visit to the factory.
The Cheongju plant serves as a global control tower and a key base for LG Chem's cathode production. Cathodes are a core material that determines battery capacity and life. It accounts for more than 40 percent of battery production costs.
In particular, the plant produces high-nickel NCMA (nickel, cobalt, manganese and aluminum) cathodes for next-generation electric vehicle batteries. NCMA cathodes raise the content of nickel which determines the energy density and applies highly stable aluminum to improve both the power and stability of the battery.
After looking around the production line, Koo checked the production status and global supply strategies of workers there. The chairman also encouraged staff during this visit.
LG Chem produces 120,000 tons of cathodes annually, 70,000 tons of which is produced at its Cheongju plant, enough for about 700,000 high-performance pure electric vehicles.