LG Energy Solution to build battery recycling plants with Chinese partner

LG Energy Solution to build battery recycling plants with Chinese partner

LG Energy Solution’s factory in Nanjing / Courtesy of LG Energy Solution

By Park Jae-hyuk

The LG Energy Solution (LGES) has signed a memorandum of understanding with Huayou Cobalt to establish a battery recycling joint venture in China, a South Korean company said Tuesday. This is the first such battery recycling venture in China by Korean and Chinese companies.

The two companies plan to complete the installation of the facility by the end of this year after discussing the business content.

According to LGES, the new company will extract nickel, cobalt and lithium from scrap and used batteries. The recovered material will be used to manufacture cathode materials and will be shipped to a Korean company’s electric vehicle battery plant in Nanjing.

A pretreatment plant will be built near the LGES production site in Nanjing to process scrap and waste batteries. An aftertreatment plant for manufacturing cathode materials using the extracted materials will be established in Quzhou, where Huayang Cobalt operates.

“For a sustainable and stable battery supply chain, we need to establish a virtuous cycle of resources,” said Kwon Youngs, CEO of LGES. “Recent cooperation has enabled a stable supply of raw materials and improved cost competitiveness.

Huayou Cobalt Chairman Chen Xuehua said the recent partnership will allow his company to strengthen its relationship with LGES.

“The two companies will strive to establish a positive cycle for the production of environmentally friendly, high quality batteries,” he said.

The Chinese company is the largest cobalt producing country in the country. In 2019, the company worked with LG ES’s parent company, LG Chem, to set up a joint venture between precursor manufacturing in Shengzhou and cathode material manufacturing in Wuxi.

Huayou Cobalt and LG Chem have established a cathode material manufacturing company in Gumi, Gyeongsangbuk-do this year.

 

Credit/Source : KoreaTimes

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