By Kim Yoo-chul
LG Chem, one of the world’s leading suppliers of chemicals and car batteries, is looking to diversify its business lineup by carving out a niche in the expanding market for solar-cell products and technology.
LG Chem CEO Kim Bahn-suk says the production of poly-silicon, a key material used in solar cells, and glasses for liquid crystal display (LCD) screens will combine as new revenue sources that will complement the company’s fast-growing businesses in rechargeable batteries and stereoscopic imaging technology.
LG Chem recently posted a disappointing second-quarter, showing that it was badly exposed to seasonal volatility, but Kim said the setback wasn’t affecting the company’s aggressive expansion.
``In batteries for electric vehicles, we are positive to reap 300 billion won in revenue by the end of this year helped by the steadily growing sales of electric vehicles in advanced markets overseas,’’ said Kim.
The company expects to generate 4 trillion won (about $3.8 billion) from its car battery business by the end of 2015, when it aims to have a market share of about 25 percent. Major carmakers General Motors, Ford, Renault and Hyundai-Kia lead an expanding list of battery clients for LG Chem.
Although the priority is on developing batteries for electric vehicles, it is looking to boost competitiveness in the market for lithium-polymer batteries used in smartphones and touch-screen tablets.
In approving larger investment in poly-silicon and LCD glass, Kim downplayed the worries over price volatility in the segments.
Concerns of oversupply in poly-silicon have been exaggerated, Kim said, claiming that high oil prices have been accelerating the transition toward renewable energy sources and lifting demand for solar cells.
The company will boost its poly-silicon production capability to 20,000 tons within the next two years, company officials said. It is also planning to construct a new plant in Yeosu, a port city in the southwest of the country.
``Due to a strategic partnership with Taiwan-based firms, LG Chem has secured technology to produce cost-effective poly-silicon products,’’ Kim said.
LG Chem is also building its second and third LCD glass production lines, which will be up and running by 2013.
LG Chem formed a partnership with Germany’s Schott to use its patented technology for LCD glass.
The company, which is critical supplier of film used in screens supporting 3D imagery, is hoping to exploit the growing market for advanced displays.