LG Chem announced its business strategy to leap up to become a top global battery materials company and its plans for its three new growth engines by 2030.

Shin Hak-cheol, LG Chem CEO, emphasized that the company aims to grow its battery materials sales sixfold to KRW 30 trillion (USD 25.5 billion) by 2030, from KRW 4.7 trillion (USD 3.9 billion) in 2022. This is backed by a compound annual growth rate of 26%.

In detail, LG Chem’s sales from the three sectors which the company is counting on to power its growth – battery materials, sustainability business and innovative new drugs – is expected to make up 57% of the company’s total sales (by reaching KRW 40 trillion, or USD 30 billion) in 2030.

The three areas accounted for 21% (with KRW 6.6 trillion, or USD 4.9 billion) of the company’s sales in 2022. This will mark a turning point in LG Chem’s business as it aims to become a “top global science company”, shifting from a petrochemical-centric portfolio.

To take the lead in the cathode material sector

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

It plans to strengthen its market leadership by establishing a global quadrilateral production system, connecting Korea, China, U.S. and Europe, to make cathodes. This will help LG Chem expand its production capacity from 120,000 metric tons in 2023 to 470,000 metric tons by 2028. 40% of LG Chem’s clients will be new global companies besides its subsidiary LG Energy Solutions.

LG Chem announces its business strategy and aims to become a top global battery materials company.

LG Chem will also tighten its technology leadership by expanding its high-nickel cathode product lineup for pouch-type and cylindrical batteries, mass-producing ultra-high-nickel cathodes with nickel content of 95% and extending the application of single crystal cathode materials technology in the sector.

LG Chem is also actively considering expanding its offerings with cost-efficient cathode materials including high-voltage mid-nickel (Mid-Ni), lithium iron phosphate (LFP) and manganese-rich (Mn-Rich) to meet customer needs and target the growing mass market for EVs.

Expanding additional battery materials business

In the separator market, LG Chem plans to grow its footprint in the U.S. and European markets. To that end, LG Chem will join forces with Toray to weave its exclusive, world-class coating technology and the unique fabric technology of the Japanese materials company. It forecasts more business opportunities as separators are classified as battery components as per the U.S. Inflation Reduction Act (IRA).

LG Chem also projects to pushfully expand its business in additional battery materials such as CNTs, anode binders and cathode dispersants by seeking opportunities for partnerships based on LG Chem’s technological advantages.

Its CNTs, for instance, has top-notch quality as it uses cobalt-based catalysts made with LG Chem’s proprietary technology which helps lowering the content of magnetic impurities that can affect battery quality.

In addition, LG Chem will actively explore growth opportunities based on innovative materials technologies such as pure-silicone (Pure-Si) anode materials, electrolytes for solid-state batteries and flame-resistant battery materials like aerogels.

Strengthen sustainability business

LG Chem works on low-carbon business by accelerating the transition of its business structure around recycled, bio/biodegradable and renewable energy materials. Moreover, it targets to boost sales in this sector to KRW 8 trillion (USD 6.8 billion) by 2030 from KRW 1.9 trillion (USD 1.6 billion) in 2022.

Based on its mechanical and chemical recycling technology capabilities, LG Chem is securing a diverse product portfolio to target the recycled plastics market, which is expected to reach KRW 100 trillion (USD 84 billion) by 2028.

The company is leading the mechanical recycling field. For instance, LG Chem has successfully commercialized the world’s first white post-consumer recycled acrylonitrile butadiene styrene (PCR ABS), overcoming the disadvantage of fading colors.

Chemical recycling is also an area which LG Chem is focusing on. In March, LG Chem started the construction of its first pyrolysis oil plant in Dangjin, Korea, which will be the nation’s first plant using supercritical water technology and have an annual production capacity of 20,000 metric tons.

Moreover, starting from the first quarter of next year, LG Chem will be mass-producing polybutylene adipate terephthalates (PBATs). To tap the market for poly lactic acids (PLAs), the company is also giving shape to its collaboration with Archer-Daniels-Midland (ADM), U.S.-based multinational leader in global nutrition.

Development and innovation in new drugs

LG Chem added that it is rolling up its sleeves to become a global innovative pharmaceutical company with five new FDA-approved drugs and sales of KRW 2 trillion (USD 1.65 billion). To that end, LG Chem will continue commercializing new drugs by concentrating on oncology and metabolic therapeutics.

In particular, the company has acquired AVEO, a U.S. company with an FDA-approved new drug FOTIVDA, to strengthen its business competitiveness in the U.S., the world's largest anti-cancer market. Moreover, the company is considering escalating the development of new oncology drugs and introducing promising new drug substances.