The Fair Trade Commission (FTC) announced on Tuesday that they had approved the formation of a joint venture between LS, a major South Korean conglomerate, and battery material producer L&F Co. The new company, tentatively named LS-L&F Battery Solution, will produce precursors, which are chemicals containing nickel, cobalt, manganese, and aluminum that are used to make cathodes. Cathodes are a key secondary battery material that determine the power and range of electric vehicle batteries.
The venture was established under a 55:45 agreement and is intended to create a “value chain” for secondary batteries that includes resources, precursors, and cathodes. LS has also announced that they plan to invest 1.84 trillion won to build a battery precursor plant in the Saemangeum complex. The FTC noted that this venture is likely to increase competition in the precursor industry and help meet the growing demand for secondary batteries in the electric car sector.
A photo provided by the presidential office shows President Yoon Suk Yeol looking at a battery precursor while listening to an explanation from LS Group Chairman Koo Ja-eun ahead of a signing ceremony for LS Group’s project to build a battery precursor plant.