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LG Chem invests 40 billion won in Chinese copper maker

Posted May. 17, 2021 08:58,   

Updated May. 17, 2021 08:58


LG Chem announced an equity investment of 40 billion won in China’s major copper foil maker Jiujiang DeFu Technology. Its decision may allow LG Chem to strengthen a competitive edge in battery materials where its main focus is placed to nurture a future driving engine. Copper foils, one fifteenth of the thinness of a hair strand, are one of the main EV battery materials that is used to enable anodic currents.

DeFu is China’s third largest copper foil manufacturer in terms of production capacity, which manufactures elecfoils used for secondary cells and copper foils for PCBs in electronics. With factory lines in operation in Jiangxi, Gansu and other Chinese provinces, it has an annual production capacity of 49,000 tons, which is expected to increase to 78,000 tons by next year.

“DeFu offers us the best production cost competitiveness in the industry,” said LG Chem. “Only this manufacturer in China boasts an independent technology for additives to copper foils, ensuring constant quality in production.”

“We decided to invest equity in DeFu, which has growth potential and a trigger for an inter-business synergy effect, as part of our efforts to nurture battery material business,” said Nam Cheol, the head of LG Chem’s advanced materials division. “LG Chem will lead the battery material industry by increasing capabilities in new business fields while securing a competitive edge in the existing businesses.”

Dong-Il Seo dong@donga.com