A throwback to 2023, as LG Chem accelerates transformation into a global science company, focusing on new growth engines!
2023. 12. 28
What does your year-end look like? Some people write their resolutions in a new diary, while others flip through the old one to wrap up the past year. Looking back can be as important as looking ahead. That’s because we learn our lesson by tracing our footprints and prepare for a greater leap towards the future.
For LG Chem, 2023 has been the year of transformation focused on their three new growth engines. Since announcing the three new growth engines (eco-friendly materials, battery materials, global innovative new drugs) in 2021, LG Chem has been focusing on these keywords to rapidly restructure their business portfolio. Within the ‘eco-friendly material’ sector, the company moved swiftly to produce sustainable materials, seen by the establishment of supercritical pyrolysis oil plant, commercialization of bio-plastic technology, and launch of new compostable plastic products. As for the ‘battery material,’ LG Chem set the sales goal of USD 25.5 billion by 2030 and had major accomplishments including mass-production of high-nickel cathode materials and development of a material which delays battery thermal runaway. The global new drug sector also made a surprising announcement by acquiring AVEO, a US-based pharmaceutical company centered on anticancer treatments. This showed LG Chem’s strong determination to target at the America, the world’s largest anticancer market.
What happened at LG Chem in 2023? Let’s review 12 major news stories that filled LG Chem’s year.
In January 2023, LG Chem CEO Hak Cheol Shin was appointed as the chairman of ‘Chemical and Advanced Materials Industry Governors’ of the Davos Forum. As the chair of the community, CEO Shin is expected to exercise joint leadership for the industry to discuss major pending issues of the global chemical industry, ushering in coordinated response plans. This is the first time for Korean entrepreneurs to be appointed as the head of 26 industry councils under the Davos Forum.
On January 18th, LG Chem successfully completed the acquisition of AVEO, an oncology-focused biopharmaceutical company based in the U.S. AVEO is a group which has secured the core competence specialized in the anticancer treatment market, including clinical development, approval, sales, and marketing. The acquisition of AVEO will help LG Chem to target at America, world’s largest anticancer treatment market, and position the company to become one of the top global oncology companies.
On May 18th, LG Chem was selected as the exclusive RO (Reverse Osmosis) membrane supplier for a massive seawater desalination project in Ashdod, Israel. The Ashdod project is one of Israel’s top 5 desalination plants, boasting a large scale. LG Chem plans to supply about 30,000 RO membranes, which can desalinate up to annual 100 million tons of seawater, enough to supply water to about 1.1 million people. Based on the desalination project in Israel, LG Chem intends to strengthen their leadership position in the Mediterranean market.
> Click to learn more about LG Chem’s RO membranes
On March 30th 2023, LG Chem held a groundbreaking ceremony for the nation’s first super critical pyrolysis oil plant and aerogel, a next-generation insulation material, plant at the Seongmun National Industrial Complex in Dangjin, Chungnam, Korea. In order to establish a plastic circular economy, LG Chem plans to invest USD 221 million (KRW 310 billion) by 2024 to construct a super critical pyrolysis plant and aerogel plant that are large enough to fit 32 soccer fields. Super critical pyrolysis technology is one of the chemical recycling methods, which breaks down waste plastics using high temperature/high pressure super critical vapor. On the other hand, aerogel is an insulation material composed of over 95% gas, which is light as air and hardly absorbs any heat.
> Click to learn more about the construction of pyrolysis oil and aerogel plants
On April 13th, LG Chem signed a joint development agreement with Gevo, Inc., a North American renewable fuel company, to commercialize bio-propylene by 2026. Gevo is an eco-friendly energy group which holds the original technology required to produce sustainable aircraft fuel (SAF) and bio-plastics using plant-based raw materials. While Gevo supplies the technology to produce propylene using bio-ethanol, LG Chem will work to commercialize the product by coordinated research & development and establishing plant facilities. This is the first commercialization effort to produce bio propylene with ETO (Ethanol to Olefin) technology.
On May 16th, LG Chem CEO Hak Cheol Shin gave a keynote speech at the Bank of America (BofA) 2023 ‘Korea & global EV/EV battery conference,’ revealing the company’s aim to grow their battery materials sales sixfold by 2030 from USD 3.9 billion (KRW 4.7 trillion) in 2022 to USD 25.5 billion (KRW 30 trillion) by 2030. As battery materials show sharp growth of about average 26% per year, LG Chem intends to focus their efforts on fostering these materials to leap as a global top comprehensive battery materials company.
> Click to check out LG Chem’s blueprint to become a top battery materials company
On May 31st 2023, LG Chem started construction of their fourth carbon nanotube (CNT) plant at Daesan complex, Chungnam, Korea. CNT is a next-generation material receiving spotlight for its application in batteries and semiconductors, featuring excellent electricity/heat conductivity and solidity. LG Chem’s CNT 4 plant is slated for operation in 2025 and will contribute to doubling LG Chem’s annual CNT production capacity to 6,100 tons. By expanding the CNT production capability, LG Chem will occupy their leadership in the rapidly-growing global CNT market, focused on battery materials.
> Click to learn more about CNT, LG Chem’s future prospect
In June 2023, LG Chem began mass-production of next-generation ‘high-nickel single-particle (single-crystal) cathodes’ for batteries at their cathode plant in Cheongju, Korea. Single-particle cathode refers to a one-body material made by combining nickel, cobalt, manganese, etc., which is a core factor that affects the lifespan and capacity of a secondary battery. Since 2021, LG Chem has been carrying out research of this material as a solution to battery gas, which was the biggest pain point their customers experienced. High-nickel single-particle cathode is thereby gaining spotlight as an innovative game changer of the battery materials market.
LG Chem launched COMPOSTFUL™, a compostable material solution which breaks down naturally within 6 months~2 years under specific conditions. COMPOSTFUL™ is a compound word of ‘compost’ and the suffix ‘-ful,’ which means ‘full of~.’ COMPOSTFUL™ has received certifications from global authentication authorities such as DIN CERTCO, TUV OK Compost, and BPI, for its compostability, and its quality is now widely recognized. Starting with production of 3,000 tons of prototypes in 2023, LG Chem plans to expand the annual production of COMPOSTFUL™ to 50,000 tons by 2024.
On September 13th 2023, LG Chem opened a European Customer Solution (CS) Center in Frankfurt, Germany. CS Center is a professional organization which provides comprehensive technology solutions on product development, quality improvement, and productivity enhancements, etc., to the customers and partners of LG Chem. LG Chem European CS Center plans to procure technological capabilities in not only automotive materials required by European customers, but also the processing technology for eco-friendly materials such as recycled plastics. Furthermore, LG Chem will station professionals specialized in such technologies to provide customers with a wholehearted technical assistance.
> Click to learn more about LG Chem’s opening of European CS Center
LG Chem explored the possibility to establish a next-generation bio-oil (HVO) plant in Daesan complex, Chungnam, Korea, by joining forces with ENI SM (Sustainable Mobility), Italia’s largest government-operated energy group. ENI SM, a subsidiary of ENI, is a company that carries out an eco-friendly fuel business centered on hydrotreated vegetable oil (HVO). HVO is a next-generation bio-oil produced by adding hydrogen to plant-based raw materials such as waste cooking oil. With the establishment of a joint corporation, LG Chem will be able to internalize HVO to secure the basis to supply raw materials needed for production of bio materials such as bio-circular balanced SAP, ABS, PVC, etc.
LG Chem cooperated with LX Hausys to develop a material that delays battery thermal runaway, which withstands flame at 1,500℃ for over 20 minutes. The special flame-retardant CFT can withstand strong flame and high pressure for 14 times longer duration than existing composite materials. Applying this material is expected to delay battery thermal runaway, a major factor of fires caused by batteries, and contribute to the development of much safer electric vehicles.
Have you enjoyed the 12 news stories of 2023 LG Chem? This year, LG Chem carried out various actions focused on the new growth engines, and made progress in their journey toward sustainability. As a global science company leading sustainability, LG Chem is poised to make significant strides in 2024. Look forward to the progress!
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