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| Leyou New Energy Materials cathodes plant in Wuxi, Jiangsu province / Courtesy of LG Chem |
By Kim Hyun-bin
LG Chem is making strides to transition swiftly into an eco-friendly company and to fulfill its goal to become carbon free by 2050.
Adding to hype, the company has inked a deal with Jiangsu Runfeng New Energy, a Chinese solar and wind electric power company, Sunday, to receive energy from renewable sources to power its Leyou New Energy Materials cathodes plant in Wuxi, a city in Jiangsu province.
LG Chem is set to receive 140GWh (gigawatt) worth of renewable energy annually, which is enough to power 30,000 households for over a year and to fully power LG's Wuxi plant, the company announced.
The two firms inked a power purchase agreement (PPA) which allows renewable energy sources to be sent directly from wind and solar power generators to the Wuxi plant. This also marks the first Korean company to implement the procedure.
With the new deal, LG will operate its Leyou New Energy Materials plant solely on renewable energy starting next year.
The transition will eliminate 100,000 tons of carbon compared to ordinary industrial energy sources, a similar carbon reduction effect equivalent to planting 1.7 million trees, the company explained.
LG also is considering inking a renewable energy PPA deal with its precursor plant in Quzhou province within next year.
Through the two Chinese plants transition to renewable energy, LG aims to become over 90 percent carbon neutral within its electric battery materials market in China.
"In the production of cathodes and precursor there are hardly any carbon emissions. Just by transitioning the production to renewable energy sources we will be able to realize over 90 percent carbon neutrality," an LG Chem official said.
To better meet the rapidly growing demand for battery materials, LG Chem has partnered with Chinese firm Huayou Cobalt in a bid to ensure a stable supply of cobalt for lithium-ion batteries.
Through the partnership, both companies jointly opened a cathodes plant in Quzhou and precursor plant in Wuxi.
LG Chem says the two plans have been fully operating since last month and are capable of producing 40,000 tons of precursors and cathodes, annually, enough to power 400,000 EVs.
Last July, LG Chem was the first chemical company to announce a carbon neutrality plan, dubbed "Carbon Neutral Growth," aimed at producing zero carbon by 2050.
"The recent PPA is one of the key strategies to fulfill LG Chem's promise for 2050 Carbon Neutral Growth," LG Chem Vice Chairman Shin Hak-cheol said.
