South Korean chemical business Lotte Chemical [011170:KS] is looking for further M&A deals to build a complete battery material value chain, as reported by the Korea Economic Daily on October 16. Concerning possible investment opportunities, the business has been in discussions with various battery materials manufacturers who produce anode and cathode materials, electrolytes, and separators. The announcement follows Lotte Chemical’s acquisition of a 53.3% stake in South Korean battery component maker Iljin Materials[020150:KS] for KRW2.7tr (USD1.9bn). By 2050, Lotte Chemical is expected to completely switch to renewable energy owing to the acquisition agreement.

Lotte Chemical’s parent company, Lotte Group [004990:KS], has said that it will invest KRW5.2tr (USD4.34bn) to achieve carbon-neutral growth by 2030. The chemical subsidiary is increasing its green business growth as part of the plan to maintain greenhouse gas emissions at 2019 levels by 2030. In addition, with the recent rapid rise of the global electric vehicle industry, South Korean chemical behemoths such as LG Chemical [051910:KS], POSCO Chemical [003670:KS], and Lotte Chemical are boosting their investments in battery materials. Lotte Chemical, for example, intends to create KRW5tr (USD3.5bn) in revenue from its battery materials business by 2030. LG Chem stated that it plans to invest KRW6tr (USD4.2bn) in the battery materials industry by 2025.

Sources:

https://www.kedglobal.com/batteries/newsView/ked202210160003

http://www.ccin.com.cn/detail/f9d21d0f24a4e8a5b2ac7a6fb2f9bcfb/news

https://finance.sina.com.cn/esg/ep/2022-02-15/doc-ikyamrna0740586.shtml