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| LG Chem Vice Chairman Shin Hak-cheol, right, poses with Toray CEO Akihiro Nikkaku after the two companies signed an agreement to create a battery separator joint venture in Hungary, Wednesday. Courtesy of LG Chem |
By Kim Yoo-chul
LG Chem, the country's top chemical manufacturer, said Wednesday that it has agreed with Japan's Toray to establish a 50:50 joint venture in Hungary.
In a statement, LG Chem said that the joint venture, which will mainly produce separators ― considered a key material for rechargeable batteries ― will be capitalized at 1 trillion won. The South Korean firm holds management control, as LG Chem plans to acquire an additional 20-percent stake in the joint venture.
LG Chem shares closed down 0.6 percent at 825,000 won on the KOSPI, Wednesday, according to the Korea Exchange (KRX), the country's top bourse operator.
The joint venture, LG Toray Hungary Battery Separator Kft, is set to be located inside Toray's manufacturing plant in the northwestern Hungarian state of Komarom-esztergom, according to a press release.
"Battery separators to be manufactured by the venture are set to be supplied to battery pack manufacturers in Europe, including LG Energy Solution's (LGES) battery manufacturing plant in Wroclaw, Poland," according to the release.
The announcement came before President Moon Jae-in's planned trip to European countries, including Hungary, industry sources said. The Korean leader's detailed itinerary has yet to be announced. But industry sources said that Korea Chamber of Commerce and Industry (KCCI) Chairman Chey Tae-won plans to attend various high-profile business meetings on the sidelines of President Moon's trip to Europe.
"Europe is considered as a manufacturing hub of electric vehicles (EVs)," said Woo Byung-min, a company spokesperson. Woo added that LG Chem could be able to provide a stable supply of separators to LGES. Toray is the world's third-largest wet separator manufacturer. A separator is one of the top four crucial materials for rechargeable batteries, along with cathode materials, anode materials and electrolytes.
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