LG Chem aims to sell $22 billion worth of battery materials by 2030

LG Chem CEO Shin Hak-cheol delivers a keynote speech during the B of A Securities 2023 Korea & Global EV/EV Battery Conference at Grand Hyatt Seoul, Tuesday. Courtesy of LG Chem

By Park Jae-hyuk

LG Chem announced on Tuesday that it aims to increase its annual revenue from the sale of battery materials to 30 trillion won ($22 billion) by 2030 from 4.7 trillion won last year.

The company's new sales target is 9 trillion won larger than its previous goal of 21 trillion won, which was announced during an investor roadshow held online in February last year.

“Despite being under emergency management amid the unprecedented pandemic and geo-economic conflicts, LG Chem has been proactively fostering new growth powers based on global megatrends and strategies on sustainability,” LG Chem CEO Shin Hak-cheol told foreign institutional investors during the B of A Securities conference in Seoul on electric vehicles and rechargeable batteries.

“You will be able to see and feel LG Chem's axis moving towards the next big three growth engines: battery materials, sustainability businesses and innovative new drugs.”

If the chemical unit of LG Group accomplishes its goal, its sales from battery materials, sustainability business and innovative new drugs will account for 57 percent of the company's total revenue in 2030. In 2022, its sales from the three sectors accounted for 21 percent of the company's revenue.

LG Chem said it plans to cultivate additional battery materials such as separators and carbon nanotubes (CNTs), in addition to the already-prominent cathode materials. It will also pursue R&D in new materials, including pure silicon anode materials and solid-state battery electrolytes.

In particular, the company is set to secure its global leadership in high-nickel cathodes around three key areas ― market, technology and metal sourcing.

While making these efforts to take the lead in the global battery materials market, the company promised it will strengthen its global leadership in decarbonization and continue its sustainable growth.

“We have been making grinding efforts to revolutionize our overall business management system ― we have reformed our business portfolio, established business processes based on digital transformation (DX) and reinforced operational capabilities of our offices in four major global regions,” Shin said.