LG Chem has agreed to take over LG Electronics’ battery separator business in a KRW525bn (US$458m) deal.
LG Chem, the parent company of EV battery manufacturer LG Energy Solution, said the acquisition of LG Electronics’ chemical electronic material (CEM) subsidiary will help it consolidate its leading position in the global lithium-ion battery industry.
The deal is between affiliated operations within the LG Group, South Korea’s fourth-largest conglomerate.
LG Electronics will transfer battery separator production facilities in South Korea, Poland and China, which together employ 800 people, to LG Chem as part of the agreement.
Earlier this month LG Chem announced it would invest KRW6trn by 2025 to expand its global battery supply chain business.
The company began construction of a new separator factory in Gumni last December with a production capacity of 60,000 tons per year. It also has agreements in place with mining companies to secure future supplies of raw materials.