LS Group Launches $707M Plant for Domestic EV Battery Supply Chain
LS Group has launched a substantial project to create a local supply chain for battery precursors in South Korea. The company's subsidiary, LS-L&F Battery Solution (LLBS), has finished building a cutting-edge plant in Saemangeum, with an investment of around $707 million. The plant aims to meet the rising demand for electric vehicles (EVs) and decrease reliance on Chinese suppliers.
The new plant, which has started trial production, is expected to reach an annual production capacity of 20,000 tons by 2026. This capacity is estimated to meet the material requirements for approximately 1.3 million EVs. LLBS aims to further increase its capacity to 40,000 tons per year by 2027, and ultimately to 120,000 tons by 2029.
To achieve this, LS Group has partnered with LS MnM for large-scale production of nickel sulfate. This project, planned for completion in 2025, will support the production of battery precursors. LS MnM, a subsidiary of LS Group, is expected to produce nickel sulfate on a large scale by 2029, further strengthening the local supply chain.
The establishment of this local supply chain for battery precursors is a strategic move by LS Group to reduce its dependence on Chinese suppliers. The completion of the Saemangeum plant and the planned increase in production capacity will significantly contribute to the growth of South Korea's EV industry and support the country's energy transition goals.
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