Business Strategy Toray, LG Chem to Form 50:50 JV for Battery Materials

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Glatt Ingenieurtechnik GmbH

Italvacuum, Srl

LG chem Ltd.

Toray Industries Europe GmbH

Toray and LG Chem have plans to establish a joint venture – LG Toray Hungary Battery Separator for the manufacture and sales of battery separator film which are used in automotive lithium-ion batteries. For this, LG Chem will invest 375 million dollars in Toray Industries Hungary, a 100 % subsidiary of Toray which will then establish the joint venture.

Tokyo/Japan – Toray Industries has recently announced that it has concluded a joint venture agreement with LG Chem. Under this arrangement, LG Chem would invest 375 million dollars in Toray Industries Hungary Kft. (THU), a 100 % subsidiary of Toray engaged in manufacture and sales of battery separator film, which would then establish LG Toray Hungary Battery Separator Kft. (LTHS), in which Toray and LG Chem each will hold a 50 % interest.

The new joint venture would use existing THU facilities to manufacture battery separator film for automotive lithium-ion batteries for sale to LG Group in Europe and the United States.

To cater to projected demand growth, Toray and LG Chem have agreed to expand film substrate production facilities and install new coating facilities at the existing THU location. Toray has agreed to sell 20 % of its stake in LTHS to LG Chem two and a half years after launching the joint venture. LG Chem would then manage joint venture operations.

LG Chem’s robust position in coating technology and Toray’s solid film substrate manufacturing technologies position those two entities well in battery separator films for automotive lithium-ion batteries, and both have been supplying to the global market.

LTHS will license from LG Chem and Toray the technologies necessary to produce separators for LG Group lithium-ion batteries.

It should generate synergies from the technologies of its parents to produce top-quality automotive lithium-ion battery separator films, for which demand should surge in coming years. This joint venture should also secure stable customers and expand operations by drawing on the LG Group’s business model, which vertically integrates everything from battery materials through battery production.

The Toray Group will continue to develop, manufacture, and supply battery separator film and coating in Japan and Korea to meet customer needs.

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