LG Chem is partnering with waste battery recycling specialist Jaeyoung Tech to accelerate its entry into the battery recycling market in North America.
LG Chem announced on the 21st that it has signed an equity investment contract worth 24 billion won with Chae Young Tech.
Based on the equity investment, LG Chem and Jaeyoung Tech have decided to establish a battery recycling joint venture in North America at the end of 2023.
LG Chem leads the overall business, such as building a business model, while Jaeyoung Tech is in charge of technology-related matters such as factory design.
The two companies also plan to work with local companies that have established supply chains in North America to upgrade their businesses.
Chaeyoungtech was founded in 2016 as a company specializing in battery recycling in Gumi, North Gyeongsang Province. It has the technology to extract high-purity lithium from lithium waste (scrap) used by secondary battery companies or used batteries.
The process is simple, high-purity lithium can be extracted, and the lithium recovery rate is more than 85%, which is the highest in the world, the company explained.
Previously, LG Chem, together with LG Energy Solution, invested 60 billion won in Li-Cycle, the largest battery recycling company in North America.
Lee Sang-hyup, Senior Vice President of Business Strategy at LG Chem, explained, "Through this equity investment, we will lay the foundation for entering the global battery recycling business," adding, "We will secure competitiveness with differentiated technologies and take the lead in building a circular economy.“
rice@yna.co.kr