LG Energy Solution signs battery materials MOU with Huayou Cobalt

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LG Energy Solution signs battery materials MOU with Huayou Cobalt

LG Energy Solution’s battery manufacturing plant in Nanjing, China. [LG ENERGY SOLUTION]

LG Energy Solution’s battery manufacturing plant in Nanjing, China. [LG ENERGY SOLUTION]

 
LG Energy Solution signed a memorandum of understanding with Zhejiang Huayou Cobalt to establish a joint venture that recycles battery materials.
 
LG Energy Solution announced Tuesday that the joint venture with Huayou Cobalt, a Zhejiang-based cobalt mining company, will be established within this year, after they decide on specific details.
 
The joint venture will aim to recycle batteries by extracting nickel, cobalt and lithium from used and scrap batteries. The three metals are used to make cathode materials, used to make lithium-ion batteries
 
The joint venture will build two plants in China. One that processes used batteries and scrap before extracting metals will be built in Nanjing, near LG Energy Solution’s plant. Another that extracts the metals will be built in Quzhou, where many Huayou Cobalt’s facilities are located. The two cities are about 490 kilometers (304 miles) from each other. 
 
The extracted metals will be sent to LG Energy Solution’s battery manufacturing plant in Nanjing to be made into batteries.
 
“It is crucial to set up a process in which we can manage the entire life cycle of a battery if we want to maintain a stable supply of batteries,” said Kwon Young-soo, CEO of LG Energy Solution, in a statement Tuesday. “With the partnership, we are able to enhance LG Energy Solution’s ability to secure stable supply of raw materials and increase cost competitiveness by acquiring battery recycling capabilities.”
 
Huayou Cobalt is China’s biggest cobalt producer. It has been closely working with Korean companies, establishing a joint venture manufacturing battery precursors with LG Chem in 2019. The two also established a joint venture that produces cathode materials in Gumi, North Gyeongsang in May. 

BY LEE TAE-HEE [lee.taehee2@joongang.co.kr]
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