LG Chem invests in Chinese copper laminate company
In a move to strengthen its position in the value chain for batteries, LG Chem is investing KRW 40 billion (EUR 29 million) in China’s Jiujiang DeFu Technology (DeFu), a manufacturer of copper laminate, a core part of secondary batteries.
DeFu is a high-ranked copper laminate manufacturer in China based on production capacity, and it produces ‘battery laminate,’ a copper laminate for secondary batteries, and copper laminates for PCBs. The company operates production plants in the Jiujang, Jiangxi Province and Lanzhou, Gansu Province in China. Its current production capacity is 49'000 tons annually, which it plans to expand to 78'000 tons by 2022, a press release reads. LG Chem plans to focus on fostering the battery materials business as its new growth engine, hence the decision to make an equity investments in DeFu, which possesses both growth potential and also synergy effects between businesses. Furthermore, LG Chem says it plans to enter a MOU to construct a long-term cooperative partnership in the copper laminate business with DeFu, while continuing talks about a variety of cooperation plans for the battery laminate business. “We will strengthen our value chain through omnidirectional collaboration with global companies,” adding, “We will enhance the competitiveness for existing businesses and capacities for new businesses to lead the battery materials market,” says Chul Nam, Senior Vice President / President, Advanced Materials Company.