LG Chem recorded the best performance ever in the second quarter. This was favorable results from the brisk business of petrochemicals, batteries, and battery materials. To expand battery materials, it will acquire the separator membrane division from LG Electronics and strengthen the growth engine of a comprehensive battery company.LG Chem announced on the 29ththat it recorded 11,465.1billion KRW in sales and 2,230.8billion KRW in operating profit in the second quarter. Compared to the same period last year, sales increased by 65.2% and operating profit soared by 290.2%. Both sales and operating profit were record highs on a quarterly basis.LG Chem's Chief Financial Officer (CFO) Dongseok Cha said, "We have achieved the greatest performance through even growth in all business areas, including an increase in petrochemical performance, expansion of battery material performance, and the highest sales in the life science for this quarter. We plan to implement specific business plans based on three new growth engines based on 'Environmental, Social, and Governance' (ESG) such as battery materials for mobility.”
They are planning to expand their business portfolio with a focus on battery materials. This is because sales of automobile batteries and small batteries for information technology (IT) are expected to grow in line with the increase in electric vehicle sales volume.
LG Chem held a board of directors meeting on the 29thand announced that it had decided to acquire the 'Chemicals &Electronic Materials' (CEM) division of LG Electronics' Business Solutions (BS) division for 525 billion KRW. The target of the acquisition is all tangible and intangible assets such as separator membrane production facilities and key personnel within the business unit.LG Chem explained that they plan to promote the separator membrane business by carrying out necessary procedures such as taking over LG Electronics' separator membrane coating processing plant in Wrocław, Poland, as well as domestic and overseas factories.The acquisition was made as part of LG Chem's battery materials business portfolio expansion. Separators are the four major materials for batteries, along with anode materials, cathode materials, and electrolytes. It is located between anode and cathode of the battery, preventing physical contact between the anode and cathode and facilitating the movement of ions.
As the demand for electric vehicle batteries soared, competition to secure separators became fierce. Through this business acquisition, LG Chem seeks synergy with LG Energy Solutions, the world's number one battery maker. LG Chem is expected to continue fostering the separator membrane business. It is also pursuing a plan to directly manufacture the separation membrane fabric.By thinly coating the separator fabric with a ceramic material, safety and performance are greatly enhanced, and it is expected that LG Energy Solution would supply them directly. LG Chem announced that it will continue to expand its material portfolio, such as separators, cathode materials, and anode materials, in response to the electric vehicle battery market.
By Staff Reporter Jiwoong Kim (firstname.lastname@example.org)