The push in the clean technology sector will help LG make “a shift toward more high-value industries”
LG Corp, South Korea’s fourth-largest conglomerate, said on Wednesday, over the next five years in clean technology, it plans to invest more than 2 trillion won ($1.5 billion), as part of efforts to advance in a new growth sector.
Ranging from consumer electronics and chemicals to batteries and displays, the group, which has affiliates in various businesses, said it will seek new business opportunities in clean technology, such as recycling used batteries and plastics, as well as reducing carbon emissions.
To make biodegradable plastics jointly with ADM, an American multinational food processing and commodities trading firm, LG Chem plans to build a factory in the United States by 2025.
To produce biofuel and fossil-based biodegradable polymers, the leading chemical company will also build manufacturing facilities in South Korea.
In December, LG Chem and battery maker LG Energy Solution invested 30 billion won each for a combined 2.6 per cent stake in Toronto-headquartered Li-Cycle, a lithium-ion battery recycling company.
To secure 20,000 tons of nickel for the South Korean companies over the next 10 years starting in 2023, they also signed a supply deal with Li-Cycle. The amount is enough to manufacture batteries for 300,000 electric vehicles.
The push in the clean technology sector will help LG make “a shift toward more high-value industries” amid rising global standards for environment-friendly business practices and help it fulfill its corporate social responsibility, the group said.
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