The South Korean LG Energy Solution signed a memorandum of understanding with China's Huayou Cobalt, which provides for the establishment of a joint battery processing plant in China, the first Chinese-Korean business of its kind to be established in Under heaven.
The companies intend to complete the establishment by the end of this year, after agreement has been reached on the details of its operation. According to LGES, the new company will extract nickel, cobalt and lithium from its waste and spent batteries. The raw materials obtained will be used for the production of cathodes to be supplied to the LGES battery plant in Nanjing.
The pre-treatment plant and used batteries will be located near the LGES plant in Nanjing and the second phase of raw materials will be located in the district of Cuyzhou, where Huayo Cobalt is produced.
The representative of Huayou said that working with LGES would strengthen the already existing linkages of companies and contribute to the efficient production of environmentally sustainable and high-quality batteries.
The Chinese company is the largest cobalt-producing company in the country, and a couple of years ago, in collaboration with LG Chem, the "parent" structure of LGES, it has already established a number of joint businesses of various types, including the production of battery cathodes.
LGES is involved in a variety of activities related to the manufacture of electric vehicle traction machines, and it has recently become known that the company intends to suspend the active development of prismatic batteries by focusing on the production of batch and cylindrical options.