JEOLLABUK-DO < invest Korea

According to Pulse by Maeil Business News Korea,

South Korea’s LS MnM Inc. will invest 1.16 trillion won ($897 million) to build a new secondary battery material plant in Saemangeum on the country’s southwest coast.

The company signed a memorandum of understanding (MOU) on Wednesday to construct production facilities for producing high-purity metal compounds for secondary batteries with the Saemangeum Development and Investment Agency (SDIA), the North Jeolla provincial government, Gunsan city government, and the Korea Rural Community Corporation.

The signing ceremony, held in Gunsan, North Jeolla Province, was attended by LS MnM Vice Chairman Do Seok-goo and Vice President Koo Dong-hwi, as well as SDIA Administrator Kim Kyung-ahn, and North Jeolla Province Governor Kim Kwan-young.

The facilities, named “EVBM Saemangeum,” will be situated in Saemangeum Industrial Complex Zone 5, and construction. Construction is scheduled to begin in March 2026, with production starting in 2029.

EVBM Saemangeum will produce key materials for secondary batteries, including 40,000 tons of sulfuric acid nickel, sulfuric acid manganese, sulfuric acid cobalt, lithium hydroxide and more. The production capacity is equivalent to supplying materials for 800,000 electric vehicles and LS MnM plans to employ 300 new workers.

Notably, proprietary technologies developed by LS MnM’s research institute will be applied to the new facilities, which are expected to have synergies when combined with group affiliate LS-L&F Battery Solution Co.’s processing specialties. LS-L&F Battery Solution is anticipated to benefit from reduced logistics costs by using materials produced by EVBM Saemangeum as intermediates.

LS MnM increased the investment size for EVBM Saemangeum by 370 billion won from the initial plan, attributing it to strengthened environmental and safety standards. With the increase, LS Group’s investment in the Saemangeum area totals 2.21 trillion won, up from 1.84 trillion won figure announced by the company in August.

“Saemangeum is a key hub for LS Group’s secondary battery business. With this investment in high-purity metal compounds for secondary batteries there, we expect to enhance our competitiveness and expand the Korean battery value chain while contributing to the local economy,” LS MnM CEO Stuart Doh said.


By Kim Hee-su and Chang Iou-chung

Copyrights Pulse by Maeil Business News Korea. All Rights Reserved.

Source: Pulse by Maeil Business News Korea (November 30, 2023)