Collaboration With Elon Musk, FPNI's Parent Company To Expand Into Battery Materials Business

JAKARTA - Lotte Chemical has agreed to establish a company in the United States in the first half of 2022. The establishment is intended to regulate their battery materials business.

In addition, Lotte Chemical's move also aims to raise 50 trillion won (Rp574 trillion) in sales by 2030. This is done by increasing the proportion of special and environmentally friendly businesses with high added value.

The company unveiled its vision and growth strategy for 2030 at a press conference at Lotte World Tower in Songpa-gu, Seoul on May 19, 2022.

Lotte Chemical plans to invest 4 trillion won (Rp 45.9 trillion) in the battery materials sector by 2030 to generate sales of 5 trillion won (Rp 57.4 trillion)

In particular, the company plans to enter the US market which has recently grown rapidly thanks to the increasing demand for electric vehicles and the expansion of investment in battery manufacturers.

In this regard, Lotte Chemical plans to establish a company in the United States in the first half of 2022. In addition, given the demand from local battery manufacturers, the establishment of a cathode foil or electrolytic material factory is also being considered.

Furthermore, Lotte Chemical also plans to promote the business related to the next generation of batteries. Such as lithium metal anode materials and vanadium liquid electrodes.

The company's hydrogen energy business division intends to invest 6 trillion won (Rp 68.9 trillion) by 2030 to produce 1.2 million tons of clean hydrogen per year. The hope is that the company will record annual sales of 5 trillion won (Rp 57.4 trillion).

According to Lotte Chemical, the hydrogen market is expected to reach 5.8 million tons in Korea and 98 million tons in the global market by 2030. The demand is expected to reach 3.5 million tons for ammonia and fuel cell power generation.

Lotte Chemical also plans to supply 600,000 tonnes of 1.2 million tonnes for power generation, 450,000 tonnes for fuel cells and hydrogen gas turbines and 150,000 tonnes for transportation.

Lotte Chemical is looking to produce 600,000 tonnes of clean hydrogen for power generation overseas and convert it to ammonia before bringing it to Korea.

In addition, the Korean chemical giant will also expand its recycling and bioplastic business to one million tons of environmentally friendly recycled products and sales of 2 trillion won by investing 1 trillion won by 2030.