To enhance battery production, LG Energy Solution has partnered with China’s largest cobalt producer, Huayou Cobalt, to build two battery recycling plants in China. Over the years, LG and Huayou Cobalt have established a strong partnership in the sector.
In April this year, the Chinese company and LG Chem, from which LG Energy Solution spun off, announced that they would invest a total of $913 million by 2028 to build a precursor plant in the Saemangeum National Industrial Complex, North Jeolla Province. Another joint venture between LG Chem and Huayou Cobalt was the first overseas cathode manufacturing facility that went into operation in September 2020.
However, the new partnership, according to the Korean battery maker, will bolster its environmental, social, and governance management by 2027 as it plans to work with prominent companies near its manufacturing sites in the US, Poland, and Asia across all value chains.
LG-Huayou Cobalt Battery Recycling Plants
As part of a joint venture with leading Chinese cobalt producer Huayou Cobalt, LG Energy Solution will construct two battery recycling facilities in eastern China. This will be the first industrial partnership of its type between Korean and Chinese businesses.
According to a statement released by LG Energy Solution on Tuesday, the pretreatment factory, which will be built in Nanjing, Jiangsu province, would collect battery trash produced during battery production and process used batteries.
The post-processing facility, which will be built in Quzhou, Zhejiang province, will work on recycling the battery materials recovered for lithium, nickel, and cobalt.
According to LG Energy Solution, the goal is to start construction on the facilities this year and have them operational by the end of the following year. After going through the cathode production process, the extracted and recycled metals created by the joint venture’s facilities will be delivered to the Korean battery manufacturer’s manufacturing facility in Nanjing.
Moving Battery Recycling Sector Forward
Speaking at the signing of the partnership agreement, an official from LG Energy Solution, said it hopes to establish a sustainable and stable battery supply chain.
“In order to establish a sustainable and stable battery supply chain, it is essential to establish a virtuous cycle of resources that manages the entire battery life cycle,” said LG Energy Solution. “Based on our cooperation with Huayou Cobalt, we can now further strengthen our capabilities in customer value in the recycling sector that utilizes sustainable resources.”
