Lotte Chemical, Soelect in $200 million JV for advanced batteries

South Korea’s Lotte Chemical Corp. is advancing into the electric vehicle battery market by forming a $200 million joint venture with US battery startup Soelect Inc.

The petrochemical unit of Lotte Group, Korea’s fifth-largest conglomerate, on Tuesday signed a memorandum of understanding with Soelect to manufacture advanced battery components for electric vehicles in the US.

With the $200 million investment in the JV, the two companies aim to scale up production of Soelect’s lithium metal anodes for next-generation batteries with higher energy density and fast-charging capabilities.

Based in Greensboro, North Carolina, Soelect is currently producing lithium metal anodes for next-generation solid-state batteries on a pilot basis.

Soelect and Lotte Chemical plan to mass produce such advanced batteries from 2025 when solid-state batteries are expected to be widely adopted by EV makers.

DIVERSIFYING BUSINESS PORTFOLIO

Lotte has been diversifying its business portfolio from petrochemicals into other areas, including eco-friendly projects and high-performance solid-state batteries.

Solid-state batteries with lithium metal anodes have the potential to store more energy, thus providing longer vehicle range as well as the ability to charge faster than vehicles equipped with lithium-ion batteries that use graphite or silicon-rich anodes.

According to industry data, solid-state batteries, which can charge up to 90% in 12 minutes, enable 30% longer EV range than lithium-ion batteries.

The solid-state technology also makes battery packs safer by eliminating the flammable electrolyte solution used in lithium-ion batteries.

Global automakers and battery producers are racing to develop next-generation EV batteries.

Several North American companies, including Toronto-based Li-Metal Corp. and Massachusetts-based SES, are working on lithium metal anodes.

In Korea, POSCO Chemical Co. is developing lithium metal anodes and currently makes them on a trial basis.

General Motors Co., which is working with several battery startups, is also known to be considering the use of lithium metal anodes for its next-generation Ultium battery cells.

Write to Kyung-Min Kang at Kkm1026@hankyung.com
In-Soo Nam edited this article.