LS Group completes nickel sulfate plant for EV batteries

South Korea’s LS Group said on Monday it has completed construction of a new plant to produce nickel sulfate, a key raw material for next-generation rechargeable batteries.

The conglomerate, which owns Korea’s top wire and cable producer LS Cable & System Ltd., LS Electric Co. and one of the world’s leading smelters LS MnM Inc., formerly LS-Nikko Copper, has chosen battery materials as one of its growth drivers.

"This new factory is a small but meaningful step in LS Group's journey towards a new future," LS Group Chairman Koo Ja-eun said at a ceremony held at the group’s metal recycling unit Torecom in Asan, south of Seoul. “We’ll spare no efforts to support business growth at LS MnM and Torecom.”

The ceremony was attended by Myung Roe-hyun, chief executive of LS Corp., parent of LS MnM; Doh Suk-goo, vice chairman of LS MnM; and Torecom President Lee Won-chun.

Torecom, owned by LS MnM, is Korea’s largest urban mining company that recycles valuable metals such as gold, silver, platinum and palladium.

VISION 2030

LS MnM supplies crude nickel sulfate with nickel content of at least 18% to Torecom, which then manufactures nickel sulfate through purification and crystallization processes.

LS MnM said it plans to gradually increase the new nickel sulfate factory’s annual production capacity from the current 5,000 tons to 270,000 tons by 2030. To do so, the company also plans to secure other raw materials such as mixed hydroxide precipitate (MHP) and black powder, which is produced from waste batteries.

Koo, who took the helm of LS Group in November 2021, said earlier this year that he aims to grow the group’s assets to 50 trillion won ($38.5 billion) with an investment of over 20 trillion won in growth sectors such as battery materials, electric vehicles, chips and carbon-free electricity generation by 2030 under its Vision 2030 roadmap.

In February, the group reported its best-ever annual earnings on a consolidated basis, driven by handsome growth at its major affiliates, including LS MnM.

Write to Sungsu Bae at baebae@hankyung.com

In-Soo Nam edited this article.