LG Energy Solution has established a battery recycling joint venture with Huayou Cobalt, China’s leading cobalt producer. This marks the first Korea-China joint venture for battery recycling in China.
On August 7, LG Energy Solution held a ‘Battery Recycling Joint Venture Contract Signing Ceremony’ at Huayou Cobalt’s headquarters in Zhejiang Province, China. The ceremony was attended by Huayou Cobalt Group Chairman Chen Xuehua and Executive Vice President of LG Energy Solution, Kim Dong-soo.
The new joint venture will extract key raw materials such as nickel, cobalt, and lithium from waste generated during the battery production process, including scrap and collected used batteries.
Plans are in place to build pre-processing plants for scrap handling and used battery processing in Nanjing, Jiangsu Province, and Quzhou, Zhejiang Province, respectively, along with post-processing facilities for handling recycled metals.
Construction of the factories is expected to begin this year, with projected operational timings set for late next year.
The metals produced by the new joint venture will subsequently be processed into cathodes and supplied to LG Energy Solution’s Nanjing battery production plant.
By leveraging Huayou Cobalt’s recycling technology, LG Energy Solution can secure a stable supply of key raw materials through resource circulation, thereby strengthening its customer value capabilities in the recycling sector. Huayou Cobalt Group anticipates achieving economies of scale and business expansion through enhanced collaboration with LG Energy Solution, which boasts global production and quality competitiveness.
Both parties also plan to solidify their strategic partnership and expand cooperation in the battery recycling business area in the future.
LG Energy Solution stated, “Building a sustainable and stable battery supply chain requires establishing a resource circulation system that manages the entire battery life cycle,” adding, “Through our collaboration with Huayou Cobalt, we have further strengthened our customer value capabilities in the recycling sector, utilizing sustainable resources.”
Meanwhile, LG Energy Solution is exploring new business opportunities in the battery recycling and reuse market, striving to establish resource circulation loops through partnerships with competitive companies. By 2027, the firm aims to collaborate with leading companies across major production hubs in the U.S., Poland, and Asia to enhance ESG management.
Contact: Sang-Jin Lee daedusj@autodiary.kr