Toyota Tsusho Invests in South Korea’s LG-HY BCM
Toyota Tsusho Corporation (“Toyota Tsusho”) announced today that it has entered into a share transfer agreement with Zhejiang Huayou Cobalt Co., Ltd. (“Huayou Cobalt”) to acquire a 25% stake in LG-HY BCM Co., Ltd. (“LG-HY BCM”), a joint venture between LG Chem Ltd. (“LG Chem”), a company of South Korea’s LG Group, and Huayou Cobalt.
1. Background of Investment
Demand for lithium-ion batteries is expected to further increase with the growing adoption of electric vehicles. Particularly, against the backdrop of strengthening global environmental regulations, the electric vehicle market is expanding, and consequently, establishing a stable supply system has become an important issue for battery manufacturers, in addition to ensuring battery quality and performance.
In particular, the cathode active material* used in the battery cathode is an important material that significantly impacts battery performance. In particular, ensuring a stable supply of ternary cathode active materials, which are composed of extremely scarce elements, nickel, manganese, and cobalt, remains a future challenge.
2. Purpose of Investment
LG-HY BCM is a company that manufactures cathode active materials in South Korea. It possesses world-leading manufacturing technologies for ternary cathode active materials and currently operates a plant in South Korea with an annual production capacity of 66,000 tons.
Through this investment, Toyota Tsusho will participate in the manufacturing business of cathode active materials, which are the most important materials in lithium-ion battery production. By doing so, it will enable the company to establish a competitive cathode active material supply chain and build a system that stably supplies cathode active materials produced in South Korea to battery manfuacturers, primarily in North America.
Toyota Tsusho will contribute to the stable supply of automotive battery materials essential for the spread of electric vehicles, while also promoting the establishment of a global supply chain that consistently supports the entire process from material procurement to manufacturing and supply.
*A core material used in the cathode (positive electrode) of lithium-ion batteries that determines the battery’s performance and lifespan
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Toyota Tsusho Invests in South Korea’s LG-HY BCM, source
