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LG Chem partners with China's largest energy firm for battery tech
LG Chem Vice Chairman and CEO Shin Hak-cheol, second from right, poses with Sinopec Chairman Hou Qijun, second from left, after the two signed a joint development agreement for sodium-ion battery materials in Seoul in this photo taken, Thursday. Courtesy of LG Chem
By Ko Dong-hwan
LG Chem, a leading chemical and battery manufacturer, has entered into a partnership with China-based Sinopec to codevelop materials for batteries, underscoring its commitment to the industry as global demand surges from electric vehicles (EVs) and artificial intelligence technologies.
The LG Group subsidiary said on Tuesday that it signed the agreement with China’s largest energy and chemical company last Thursday at LG Twin Tower in Seoul. According to LG, Sinopec is engaged in petroleum and gas exploration and development, refining, chemicals and new materials businesses.
LG Chem Vice Chairman and CEO Shin Hak-cheol and Sinopec Chairman Hou Qijun attended the signing ceremony. Under the deal, the two companies will jointly research anode and cathode materials for sodium-ion batteries (SIBs), establish a stable supply chain and introduce the materials to the market at a competitive price.
The partnership was established in recognition of SIBs key advantages over the lithium-ion batteries that currently dominate the global market. According to LG Chem, SIBs offer greater resource availability and price competitiveness, as well as enhanced safety and faster charging capabilities.
Compared with lithium iron phosphate batteries, SIBs also perform better at low temperatures, LG Chem added.
Citing global market analysts, the company projected that the global SIB market will grow from 10 gigawatt hours (GWh) this year to 292 GWh by 2034, representing an average annual growth rate of 45 percent.
By 2030, China is expected to hold more than 90 percent of the world’s natural resources needed for SIB production, according to LG Chem.
The Korean firm said the two companies plan to expand and diversify their SIB businesses, targeting global energy storage system and electric vehicle markets in China and beyond. The partnership will later expand to include the joint development of more eco-friendly energy and material technologies.
Shin described LG Chem as “the world’s leading battery materials and solutions company,” adding that it will “promptly develop next-generation battery materials and strengthen its portfolio to support client companies’ future business plans.”
Hou said the agreement will further strengthen the two companies’ technological and market competitiveness and help accelerate the world’s transition toward cleaner energy and more sustainable growth.