AAA weekly

2022-01-05

Copyright FOURIN, Inc. 2024

LG Energy Solution’s Recent Business Activities in China

This report includes information on the following topics:
  • LG Energy Solution (LGES)
  • South Korea
  • in-vehicle battery
  • battery manufacturing
  • LG Chem
  • LG Energy Solution Technology (Nanjing)
  • production capacity
  • pouch film
  • lithium-ion batteries
  • China
  • Shenzhen Selen Science & Technology
  • Japan
  • Dai Nippon Printing
  • Showa Denko
  • Production Bases in China
  • LiB cells
  • ESS
  • Nanjing Xingzhi Science and Technology Industry Development
  • Nanjing New Industrialization Investment Group
  • LG Energy Solution (Nanjing) Co., Ltd.
  • LG Energy Solution Battery (Nanjing) Co., Ltd.
  • LG Energy Solution Technology (Nanjing) Co., Ltd.
  • Leyou New Energy Material (Wuxi) Co., Ltd.
  • Huajin New Energy Material (Quzhou) Co., Ltd.
  • Jiangsu province
  • Nanjing
  • Wuxi
  • Zhejiang province
  • Quzhou
  • cathode materials
  • BEV
  • Zhejiang Huayou Cobalt
  • South Korean battery manufacturers
  • in-vehicle battery capacity
  • SK Innovation
  • Samsung SDI
  • business plans
  • sales targets
  • Apple
  • coin cell batteries
  • new factory
  • Tesla Model 3
  • Tesla Model Y
  • NEV
  • RE100
  • power purchasing agreement (PPA)
  • renewable energy
  • Huajin New Energy Material (Quzhou)
  • Zhejiang Zheneng Electric Power
  • Shenzhen Senior Tech Material
  • wet separators
  • procurement contract
  • Greatpower Nickel & Cobalt Materials
  • nickel smelting
  • stock acquisition
  • Shenzhen Selen Science & Technology

South Korea’s largest in-vehicle battery manufacturer LG Energy Solution (LGES) spun off from LG Chem in January 2021. The move is intended to strengthen LG Chem’s battery business which remains the sole parent company of the new entity. LG Chem has been engaging in setting up new battery factories and raising production capacity in China. In January 2020, LG Chem’s Nanjing No. 2 Plant (now LG Energy Solution Technology (Nanjing) commenced operation with an annual production capacity of 6 GWh. Ultimately, capacity will be increased to 32 GWh by 2023. In September 2021, LGES signed a contract to procure pouch film for lithium-ion batteries from a subsidiary of China’s Shenzhen Selen Science & Technology. The same pouch film was supplied by Japan’s Dai Nippon Printing and Showa Denko before, indicating a switch from foreign suppliers to a local parts maker.

LG Energy Solution: Production Bases in China (As of October 2021)

Manufacturer Local Subsidiary [Abbr.] Plant (Location) Products Notes
LG Energy Solution (Formerly: Battery business of LG Chem) LG Energy Solution (Nanjing) Co., Ltd. (Formerly: LG Chem Nanjing Information & Electronics Materials Co., Ltd. Nanjing Plant (Nanjing, Jiangsu province) Small LiB cells, including those for whiteware ・Established in Aug. 2003 and construction was completed in 2004. Capitalized at 1.13 billion USD. Owned 81% by LG Energy Solution and 19% by LG Chem China Investment at the time of investment. ・In Jul. 2021, it was reported that LG Chem China Investment had withdrawn its capital from the plant, which in turn became a wholly-owned subsidiary of LGES.
LG Energy Solution Battery (Nanjing) Co., Ltd. Nanjing No. 1 Plant (Nanjing, Jiangsu province) LiB cells, modules and packs for electric vehicles, LiB cells for ESS ・Established in Sep. 2014 and construction was started in Oct. 2014. Capitalized at 160 million USD. Owned 50% by LG Energy Solution, 30 by Nanjing Xingzhi Science and Technology Industry Development and 20% by Nanjing New Industrialization Investment Group at the time of investment. ・In Oct. 2020, Nanjing New Industrialization Investment Group pulled its capital from the plant, which in turn became a 50 / 50 joint venture of LG Energy Solution and Nanjing Xingzhi Science and Technology Industry Development. ・Has an integrated production system of cells, modules and packs with an annual production capacity of 7.2 GWh (enough for 100,000 BEVs). Has a site area of 25,000 m2.
LG Energy Solution Technology (Nanjing) Co., Ltd. Nanjing No. 2 Plant (Nanjing, Jiangsu province) LiB cells, modules and packs for electric vehicles, ESS ・Established in Aug. 2018. Capitalized at 251 million USD. Owned 100% by LG Energy Solution. ・Total investment will reach 2 billion USD by 2023 ・Annual production capacity is expected to reach 32 GWh (enough for 500,000 BEVs) after the completion of the planned investment. ・Mass production of the first phase began in 2020 with an annual production capacity of 6 GWh.
Leyou New Energy Material (Wuxi) Co., Ltd. (Wuxi, Jiangsu province) Cathode materials for LiB ・Established in Jun. 2018. Owned 51% by LG Chem and 49% by Zhejiang Huayou Cobalt at the time of investment.
Huajin New Energy Material (Quzhou) Co., Ltd. (Quzhou, Zhejiang province) Precursor for cathode materials ・Established in Jul. 2018. Owned 49% by LG Chem and 51% by Zhejiang Huayou Cobalt at the time of investment.
(Created using company PR materials and various media sources)
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