Collaborating, Sharing, Creating, Winning Together! LG Chem and Huayou MOU Signing Ceremony is Held in Quzhou
On September 22nd, with the theme of "Collaborating, Sharing, Creating, Winning Together!" in Huayou Quzhou Industrial Park, Huayou Cobalt and South Korean LG Chem joined hands for the LG Chem - Huayou MOU (Memorandum of Understanding) signing ceremony. Both parties inked cooperation agreements encompassing the Indonesian HPAL, refining, precursor projects, and the joint venture MOU for the lithium refining project in Morocco.
In his address, Vice President of LG Chem, Nam Jae, underscored that LG Chem had fostered a steadfast and productive collaborative bond with Huayou Cobalt since 2017. With the comprehensive MOU signing, they plan to leverage Huayou's technical expertise and LG Chem's global customer base in cathode materials to establish the world's most competitive precursor hub in Indonesia. Furthermore, in partnership with Huayou Holdings, they aspire to create the most competitive LFP production base in Morocco. Echoing the Chinese proverb, when two people are of the same mind, their combined strength is like a sharp blade which can cut through metal. LG Chem and Huayou are committed to further fortifying their cooperation to jointly ascend to global leadership in the battery materials.
Chairman of the Group, Chen Xuehua, conveyed in his speech that the prior collaborations between Huayou and LG Chem had forged a mutually beneficial and mutually developing community of shared interests. The initiation of this strategic cooperation ushers in a new chapter, like the passing of the torch in the Asian Games relay, where Huayou and LG Chem will continuously enhance strategic collaboration, deepen strategies cooperation, and together achieve high-quality development. This holds significant and far-reaching implications for optimizing global resource allocation, refining the global industrial landscape, and amplifying global market influence. It will undoubtedly stand as another pivotal milestone in the history of cooperation between Huayou and LG Chem.
In the presence of Vice President Nam Jae, Chairman Chen Xuehua, and other dignitaries, representatives from both sides formally signed the agreements.
▲ LG Chem's Vice President, Lee Hyang-Mook, and Xu Wei, Senior Vice President and President of the New Material Industry Group, signed cooperation agreements on Indonesian refining, precursor projects, the Indonesian HPAL project, and the joint venture MOU for the lithium refining project in Morocco on behalf of both parties.
▲ LG Chem's Vice President, Lee Hyang-Mook, and Chen Xiaojun, Vice President of Huayou Holding Group, signed the joint venture MOU cooperation agreement for the Moroccan LFP project on behalf of both parties.
According to the cooperation agreements, the two parties will establish a joint venture company in Indonesia with an annual production capacity of 50,000 tons of precursors and corresponding refining. They have the flexibility to negotiate for additional capital and production expansion based on factors such as the necessary of business expansion, investment feasibility, and market conditions. Additionally, they will establish a joint venture company in Indonesia with an annual production of 60,000 tons of nickel metal for HPAL. In Morocco, a joint venture company with an annual production of 52,000 tons of lithium salt processing will be established. Similar to the Indonesian project, they can discuss additional capital and production expansion as needed, considering factors like business requirements, investment feasibility, and market conditions.
The signing of the Memorandum of Understanding (MOU) between Huayou and LG Chem marks the comprehensive establishment of a strategic cooperation relationship along the entire value chain of precursors and cathode materials. The partnership also includes plans to jointly build new energy Li-ion materials projects in Indonesia and Morocco. This aligns with the company's medium and long-term development strategy and represents a significant step in its internationalization strategy. It corresponds to the rapid growth in demand for new energy Li-ion materials driven by the significant development of the new energy vehicle industry and responds to trends in global market industry policies. The collaboration will further integrate the strengths of both parties in raw materials, technology, and market channels, facilitating comprehensive cooperation in areas such as raw material supply, product technology research and development, and market expansion. Together, they aim to create an internationally competitive new energy Li-ion materials industry chain.
▲ Chairman Chen Xuehua presented a model of Huayou's green intelligent manufacturing equipment to LG Chem's Vice President, Nam Jae.
LG Chem's Executive in charge of Business Development, Choi Byeong-Chul, the Head of Business Development 2TEAM, Lee Chong-Mook, and the Head of Business Development 2TEAM, Park Chan-Jin, along with Huayou Holding Group's Vice President and Executive Vice President of Zhejiang Youshan New Material Technology Co., Ltd., Shao Guoxiang, participated in the signing ceremony.