We have secured a core base in Saemangeum that will become the heart of K-battery materials. We will achieve a strong K-battery materials nation by leading the localization of the battery industry value chain (the overall makeup of the industry from production to distribution).
Koo Ja-eun, chairman of LS Group, said this at the completion ceremony for the LS-L&F Battery Solution (LLBS) precursor plant held on the 30th at the Saemangeum National Industrial Complex in Gunsan, North Jeolla.
LS Group created a joint venture, LLBS, with L&F and invested a total of 1 trillion won to build a precursor plant. A precursor is a compound that mixes nickel, cobalt, manganese, aluminum, and other elements, and is a key raw material for making cathode materials.
LLBS received approval for use of the entire plant in Apr. It began trial production of precursors and aims to produce 20,000 t of precursors in 2026, 40,000 t in 2027, and 120,000 t in 2029.
LS Group has designated businesses related to batteries, electric vehicles, and semiconductors as future growth engines. Nonferrous metal smelting affiliate LS MnM is building a plant in Ulsan at a cost of 1.8 trillion won. When completed in 2027, it expects to mass-produce 62,000 t per year of nickel sulfate, a core material for precursors. LS MnM plans to supply nickel sulfate to LLBS.
Chairman Koo said, "There are concerns about an electric vehicle chasm (a temporary demand slump), but the U.S. government's large-scale tax cut legislation is accelerating the de-China shift of battery materials bound for the United States. It is a situation where favorable winds are expected for our battery corporations' entry into the U.S."