SCBK finances EV battery material suppliers

Standard Chartered Bank Korea (SCBK) is offering finance to electric vehicle battery material suppliers as part of its environmental, social and governance (ESG) programs.

SCBK said Thursday it is providing trade receivable discounting (TRD) to Posco Chemical and L&F.

TRD is a type of financing in which a supplier provides its products to the buyer and assigns the accounts receivables to a bank, and the bank makes payments to the seller in advance and receives payments from the buyer later.

This allows suppliers to be paid faster.

SCBK signed a $100 million TRD facility with L&F and $80 million TRD facility contract with Posco Chemical.

L&F produces nickel, cobalt, manganese and aluminum cathode materials. Posco Chemical produces both cathode and anode materials.

“ESG management and a transition to net zero [carbon emissions] are mandatory for all companies including SCBK,” said Park Jong-bok, SCBK CEO. “We will develop a wide range of financial solutions to help remove the financial barrier preventing a transition to net zero [carbon emissions] by increasing green finance.”

BY JIN MIN-JI [jin.minji@joongang.co.kr]