LLBS aims to cultivate Saemangeum as a mecca for K-battery materials once LS MnM’s nickel sulfate plant is completed, with the intention of reducing dependence on China, which currently dominates 80% of the precursor market.
LS Group announced on Sept. 30 that LLBS has completed the construction of its precursor factory in the Saemangeum National Industrial Complex in Gunsan. The 132,231 square meter (about 40,000 pyeong) factory received a total investment of 1 trillion won and is expected to create 1,000 new jobs. Precursors are key intermediate materials used before producing cathode materials, which act as the heart of batteries, by mixing nickel, cobalt, manganese, and aluminum. The completion ceremony was attended by key figures including LS Group Chairman Koo Ja-eun, LS Group executives, L&F Board Chairman Heo Je-hong, North Jeolla Province Governor Kim Kwan-young, and Saemangeum Development Agency Commissioner Kim Eui-gyeom.
LLBS, which received approval for the entire factory in April this year, plans to complete trial production by the end of the year and produce 20,000 tons of precursors next year. The company aims to increase precursor production to 40,000 tons by 2027 and 120,000 tons by 2029, enough for 1.3 million electric vehicles.
LS Group has been growing its precursor business to secure new growth engines. This strategy aims to strengthen the group’s existing electrical and power business competitiveness while building a foundation for future businesses in “BES” (battery, electric vehicle, and semiconductor). Koo has been directing major affiliates to leverage their experience in power infrastructure and energy sectors to strongly drive businesses in battery materials, electric vehicle parts, and eco-friendly energy.
Caption: Key officials participate in a tape-cutting ceremony at the completion ceremony of the LS-L&F Battery Solution precursor factory in Gunsan, Jeollabuk-do on September 30. From the fifth from the left: LS MnM CEO Dong-hwi Koo, LS Vice Chairman No-hyun Myung, Jeollabuk-do Council Chairman Seung-woo Moon, Jeollabuk-do Governor Kwan-young Kim, LS Chairman Ja-eun Koo, LLBS CEO Kyung-soo Jung, L&F Board Chairman Je-hong Heo, Saemangeum Development Agency Commissioner Eui-gyeom Kim, Gunsan Mayor Im-jun Kang, and Korea Eximbank Acting President Jong-hyuk Ahn. Photo=LS
Precursors, which are expected to grow rapidly due to demand for electric vehicle batteries, are one of LS’s future core businesses. Market research firm SNE Research, in its “Cathode Precursor Technology Trends and Market Outlook Report” published in March, predicted that global demand for cathode precursors would increase 2.4 times in 8 years, from 3.2 million tons in 2024 to 7.77 million tons in 2032. The projected compound annual growth rate is 12%.
Following the completion of the precursor factory, when the nickel sulfate plant being built by LS Group’s non-ferrous metal smelting affiliate LS MnM becomes operational, a robust ecosystem will be established in the secondary battery materials business. LS MnM plans to operate a plant producing 62,000 tons of nickel sulfate annually in Saemangeum from 2029. Nickel sulfate is a key material for precursors, and when LS MnM produces it, LLBS will receive it to make precursors, which will then be supplied to L&F, their partner company producing cathode materials, completing the structure.
As the Saemangeum factories begin operations one after another, Korean battery material companies’ dependence on Chinese precursors is expected to decrease. Chairman Koo emphasized, “We have established a core base in Saemangeum to become the heart of K-battery materials to reduce dependence on China, which accounts for 80% of the global precursor market, and to lead the global supply chain with pure domestic technology.” He added, “Despite concerns about the chasm, with the acceleration of de-Chinization of battery materials bound for the U.S. due to the Trump administration’s large-scale tax cut bill, favorable winds are expected for Korean battery companies’ entry into the U.S. market.”
businesskorea.co.kr
