LG Chem invests in Canadian battery-recycling companyLG Chem and its wholly-owned battery subsidiary LG Energy Solution together acquired a 2.6-percent stake in Canadian battery recycling company Li-Cycle.
LG Chem and LG Energy Solution each invested 30 billion won to buy 2.2 million shares of Li-Cycle for $11.32 each.
With the deal, the companies inked a number of commercial agreements.
Li-Cycle will sell 20,000 tons of nickel obtained from recycled batteries and scrap generated from manufacturing process to the two Korean companies for 10 years, starting in 2023.
That is sufficient to make 300,000 new electric vehicles (EV) that use 80 kilowatt-hour batteries, according to LG Chem.
Battery manufacturer LG Energy Solution will sell nickel-containing battery scrap and other materials from its manufacturing process to Li-Cycle to achieve a virtuous cycle in making batteries.
Deals of this kind are expected to drive down the battery costs by 25 percent to 50 percent, according to Li-Cycle.
“This proposed commercial agreement with LG Energy Solution and LG Chem and related strategic investment further enhance our global growth strategy as we continue to scale our safe, efficient and sustainable lithium-ion recycling technologies,” said Ajay Kochhar, founder and CEO of the Canadian company.
Li-Cycle, founded in 2016, is based in Toronto, Canada and has two recycling facilities in operation and is building two more.
Its first facility is located in Ontario, Canada and the second is in Rochester, New York. The third is being built in Gilbert, Arizona and the fourth will be built in Tuscaloosa, Alabama.
BY JIN EUN-SOO [email@example.com]