LG Energy Solution acquires stake in Chinese battery materials company Greatpower, Auto News, ET Auto
South Korean battery maker LG Energy Solution will pay 35 billion won ($ 30 million) for a 4.8% stake in Chinese companies Greatpower Nickel and Cobalt Materials Co and has secured six years of nickel supply from the company, he said on Friday.
The investment strengthens LG’s presence in the world’s largest electric vehicle (EV) market.
LG Energy Solution, a subsidiary of LG Chem which counts automakers Tesla and General Motors among its customers, said in a statement that it had obtained a total of 20,000 tonnes of nickel battery ingredient from Shanghai-based Greatpower over six years. from 2023.
That would be enough for 370,000 electric vehicles, he said.
LG Chem already owns a battery material production company in China alongside Zhejiang Huayou Cobalt.
In its own statement, Greatpower said the merger “would ensure a stable supply of essential raw materials needed for the production of electric vehicle batteries.”
LG Energy Solution and Hyundai Motor this week began construction of a $ 1.1 billion factory to manufacture batteries for electric vehicles in Indonesia.
($ 1 = 1,175.7000 won)