LG Chem Plans To Capitalize $424 Million for Battery Material Plant in South Korea
Published Date | 2019 August 17
LG Chem will invest $424 million to build a manufacturing facility for cathode material for lithium-ion batteries which will support the lithium-ion battery market
Global: LG Chem plans to break ground in the city of Gumi, in southeastern South Korea, by initiating cathode production which will start by 2022. LG Chem plans to boost its production of cathode material by up to 35%, compared to the current production which is 20%. The company currently operates two other cathode production plants in the country and is building one in China. LG Chem’s new factory will generate about 1,000 domestic jobs in South Korea which will further help in boosting the economy. The company is one of the leading electric vehicle battery makers in the world and General Motors and Volkswagen are among its customer list.
According to BlueWeave Consulting, Global Electric Vehicle Battery market is growing rapidly owing to increase in level of pollution which surges the demand of electrical vehicle. Increasing number of deaths in India and China are encouraging government and non-government organization to spread awareness regarding pollution and its severe negative health impacts due to which government has initiated supportive rules and regulations for the adoption of electric vehicles. Falling cost of batteries and Government subsidies are some other factors boosting the demand of lithium batteries.
According to BlueWeave consulting’s report, Titled Global Electric Vehicle Battery Market,by Battery Type (Lithium-ion Battery, Lead Acid Battery, Nickel Metal Hydride Battery, and Others), by Vehicle Technology (BEV, PHEV and HEV), by Vehicle Type (Passenger Car, Commercial Car and Two Wheeler), by Region (North America,Asia Pacific, Europe, Latin America, and Middle East & Africa); Size and Forecast, 2014-2025
Global Electric Vehicle Battery market is expected to grow with a CAGR over 19% during the forecast period 2018-2025. Environmental pollution cause more than three times death than malaria, tuberculosis, and AIDs, countries such as Indian and China records the maximum death caused by environmental pollution. Pollution causes 7% of the medical expenses among middle income group across the world, in addition pollution caused by coal-burning industry, for home heating and power plants accounted for about 40% of PM2.5 exposures and lead to 366,000 deaths in 2013. Hence, rising public awareness of air quality and the burden of disease caused by air pollution is an essential step in reducing air pollution and improving public health which is accelerating market demand for electric vehicles battery market.