LG Chem will partner with Jae Young Tech to accelerate entry into the North American battery recycling market.
LG Chem announced on the 21st that it has signed a 24 billion won investment agreement with Jae Young Tech, a waste battery recycling company at the LG Twin Towers in Yeouido, Seoul.
Based on this investment, the two companies plan to establish a joint venture for battery recycling in North America by the end of 2023. LG Chem will manage the overall business, such as establishing the business model, while Jae Young Tech will handle the technology aspects. issues like plant design. LG Chem and Jae Young Tech also plan to expand their business in North America by partnering with domestic companies that own supply chains.
Jae Young Tech was founded in 2016 and is located in Gumi, Gyeongsangbuk-do, specializing in battery recycling. The company owns the technology to extract high-purity lithium from lithium waste left behind by secondary battery manufacturers or from used batteries.
Conventional manufacturing methods involve placing the battery in a liquid to extract the manganese, cobalt, nickel, etc. by smelting it, then extracting the lithium at the very end. After various materials are melted, impurities are formed in the liquid, which reduces the purity of lithium. It is also emphasized that this is a chronic problem.
Jae Young Tech used a different method to extract lithium by first heating the battery material and then treating it with manganese, cobalt and nickel. The process is simple and can produce very pure lithium while maintaining manganese, cobalt and nickel purity equivalent to existing methods. And the lithium recovery rate is over 85%, which is considered the best in the world.
LG Chem and LG Energy Solution have invested 60 billion won in Li-Cycle, the largest battery recycling company in North America, as part of their efforts to lead the battery recycling market.
Sanghyub LeeLG Chem’s vice president of strategy gave the following explanation.
We will create a cornerstone for entry into the global battery recycling business through equity investment.
It added, “We will ensure competitiveness through reputable technologies and take the lead in creating a circular economy in the future.”
■ Signed an equity acquisition agreement on the 21st … with a goal of establishing a North American recycling joint venture by the end of 2023.
□ LG Chem will lead the general business of the North American joint venture, and Jae Young Tech will handle technology.
□ Increase purity with the first lithium extraction technology… World’s best recovery over 85%.
■ Sangyub Lee, Vice President of Corporate Strategy
“With our equity investment, we will create a cornerstone to enter the global battery recycling business.”
“We will secure competitiveness with the best technology and lead the future in creating a circular economy.”
LG Chem Invests in LG Chem Battery Recycling Company, Jae Young Tech, December 21, 2022