The two LG companies invest a combined 2.6% of stakes
LG Chem and LG Energy Solution will team up with the North America’s largest battery recycling company, ‘Li-Cycle,’ to accelerate its market leadership in the battery recycling sector.
Regarding this, LG Chem and LG Energy Solution announced on Dec. 15 that it participated in the paid-in capital increase carried out by Li-Cycle recently, thus procuring 2.6% of its stakes. The total investment is 60 billion won, paid by LG Energy Solution and LG Chem evenly at 30 billion won each.
‘Li-cycle’ was established in 2016 and is currently North America’s largest battery recycling company. It possesses specialized technologies in extracting core raw materials for batteries by recycling used batteries.
In addition to its equity investment, a long-term supply agreement was also signed to supply LG Chem and LG Energy Solution 20,000 tons of nickel over a ten-year period starting in 2023. This is enough to manufacture 300,000 batteries for high-performance electric vehicles (battery capacity of 80kWh).