South Korea’s LG Energy Solution (LGES) has signed a memorandum of understanding with Chinese company Huayou Cobalt to set up a battery recycling joint venture in China. This is the first Sino-Korean company of this profile established in China.
The companies intend to complete the establishment of the company by the end of this year after reaching agreements on the details of its operations. According to LGES, the new company will recover nickel, cobalt and lithium from waste and old batteries. The raw material obtained in this way is used for the production of cathodes, which are delivered to the LGES battery plant in Nanjing.
The waste and spent battery pre-treatment factory will be located near the LGES plant in Nanjing, and the second stage raw material handling will be carried out in the Quzhou area where Huayou Cobalt operates.
A Huayou representative said the cooperation with LGES will strengthen the companies’ existing ties and promote the efficient production of sustainable and high-quality batteries.
The Chinese company’s company is the country’s largest cobalt producer. A few years ago, in cooperation with LG Chem, the “mother” structure of LGES, it has already established a number of joint ventures in various fields, including the production of materials for the manufacture of battery cathodes.
LGES is involved in diversified activities related to the manufacture of traction batteries for electric vehicles. Recently it became known that the company intends to stop active development of prismatic batteries and focus on the release of package and cylindrical options.