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LG Chem Ltd. forged a partnership with Korea Zinc to work together for a stable supply of electric vehicle (EV) battery components in North America.
Korea Zinc’s smelting technology enables the recovery of metals and the manufacturing of high-purity metals.
The comprehensive business partnership between the two firms includes the joint exploration of metals that can be used in the manufacturing of cathode materials, a key component for lithium-ion batteries.
The cooperation will include a stock swap between the two businesses worth a total of 257.6 billion won.
In exchange for a 0.47 percent stake in Korea Zinc that LG Chem would acquire, Korea Zinc will buy a 1.97 percent stake in LG Chem.
According to LG Chem, the partnership will create a huge synergy in securing a stable supply chain of battery materials.
