LG Chem seeks to acquire overseas battery materials business

Recently, according to US media citing sources, LG Chem is exploring possible overseas acquisitions to expand its battery materials business. The potential acquisition target is Umicore, which has a market value of about US$11 billion. LG Chem, which has yet to formally make an offer to Umicore, is in the initial stages of evaluating a possible deal and is unsure whether it will acquire any potential targets, the report said.

LG Chem announced in July last year that it plans to invest more than $8.5 billion by 2025 to expand its new energy and battery materials businesses, which it defines as sustainable businesses - Environmental, Social and Governance (ESG). LG Chem's electric vehicle battery subsidiary, LG Energy Solutions (LGES), raised 12.75 trillion won ($10.7 billion) in its initial public offering (IPO) in January, making it South Korea's largest publicly traded company. LG Chem Group has long attached importance to and developed the battery material business.

In December last year, Umicore announced that it expects growth in sales of its cathode materials in 2022 and 2023 to be lower than previously expected and lower than expected global market growth rates.