Saudi Oil Tankers Reverse Course as Houthi Threats Disrupt Red Sea Shipping 
Morgan Stanley Downgrades Adobe, Workday as AI Transition Raises Growth Concerns 
US Stock Futures Steady Ahead of Tesla, Alphabet Earnings as Iran Conflict Keeps Markets on Edge 
Macquarie Names Greg Ward as CEO, Signaling Stability and Strategic Continuity 
India FMCG Q1 Earnings Preview: Higher Input Costs Likely to Weigh on Profit Margins 
Gold Price Holds Above $4,130 as Fed Rate Outlook and Middle East Tensions Support Safe-Haven Demand 
Nasdaq Drops as AI Earnings, Oil Surge and Middle East Tensions Weigh on Wall Street 
Judge Approves Anthropic’s $1.5 Billion AI Copyright Settlement With Authors 
Alaska Air Q3 Outlook Misses Estimates as Higher Fuel Costs Weigh on Profit Forecast 
Gold Price Jumps Near 2% Above $4,080 as Middle East Tensions Lift Safe-Haven Demand 
Ryanair Warns Summer Airfares May Stay Lower as Quarterly Profit Misses Estimates 
European Stocks Slip as Earnings, UK Inflation and ECB Decision Keep Investors on Edge 
Lockheed Martin Unveils Lower-Cost Patriot ACE Interceptor to Meet Rising Air Defense Demand 
Asian Stocks Rise as Oil Retreats on Iran Ceasefire Hopes Ahead of Key AI Earnings 
Asian Stocks Rally on AI Spending Optimism as Middle East Tensions Push Oil to Six-Week High 
Domino’s Weighs Appeal After Australian Court Rules Workers Were Misled on Pay 
Samsung Cuts U.S. Consumer Electronics Jobs as Headquarters Moves to Texas 
:LG Chem has a goal of strengthening and boosting its battery materials value chain so it is investing in Jiujiang DeFu Technology, a Chinese battery copper foil company. The material that Jiujiang manufactures is a key part used in making rechargeable batteries.
LG Chem’s plan for the huge investment
As per The Korea Times, LG Chem, an affiliate of LG Group, revealed its plans of ₩40 billion investment in the said copper foil maker that is one of China’s best in the field. Since there is a growing market in the battery-making business, the demand for battery copper foil has also soared so the South Korean company wants to take advantage of this and allow itself to further grow in this sector as well.
"By cooperating with global companies, we plan to strengthen our value chain, as well as our competitiveness and capabilities to lead the battery materials market," LG Chem’s senior vice president, Nam Chul, said.
Based on the information coming from the Hana Financial Investment, the demand for copper foil supply for rechargeable batteries is estimated to hit 260,000 tons for this year alone and by 2025, it would be 620,000 tons with an average annual growth rate of 25%.
Jiujiang DeFu’s background
The copper company that LG Chem is investing in is the third-largest copper foil maker in China. It has two production facilities located in Gansu Sheng and Jiangxi regions. In these plants, Jiujiang DeFu produces copper foils for electric vehicles and prints circuit boards that are used in electric devices like the smartphone, The Korea Herald reported.
“DeFu’s current annual production capacity stands at 49,000 metric tons, which will increase to 78,000 tons by next year,” an official of LG Chem stated. “Its first-quarter sales logged 113 billion won, which more than quadrupled compared to a year prior.”
Jiujiang DeFu is said to have reached ₩113 billion in sales just for the 2021 Q1. This is said to show a four-fold growth compared to last year in the same period. Meanwhile, as per Yonhap News Agency, LG Chem signed a memorandum of understanding (MOU) with Jiujiang DeFu and this involved a long-term partnership in the copper foil venture.
