South Korea’s LG Chem said it had issued new bonds worth US$300m to help improve the competitiveness of its electric vehicle (EV) battery materials business and fund new investments in green businesses.
LG Chem, the parent company of, and a key materials supplier to, the second largest EV battery manufacturer LG Energy Solution, said its US dollar denominated bonds have a fixed interest rate of 4.4%. The funds would go into the development and production of EV battery cathode materials and separation membranes.
LG Chem last April pledged to invest around KRW4trn (US$3.1bn) in new plants and equipment to strengthen its position in the global EV battery supply chain. The company said it had secured KRW3.5trn (US$US2.7bn) in funds this year, including KRW2.5trn is raised from LG Energy Solution’s initial public offering (IPO) in January.
Earlier this year, the company started construction of a new factory in South Korea to produce high nickel cathode materials for EV batteries, while also announcing a new cathode materials joint venture in China. Last month it agreed to establish a new joint venture with Kemco, a subsidiary of Korea Zinc Company Ltd, to recycle EV battery precursor materials.