Toyota Tsusho Corporation, a subsidiary of Toyota Motor Corporation, has acquired a 25% stake in LG Chem’s cathode plant in South Korea’s Gumi. This move makes Toyota Tsusho the second-largest shareholder after LG Chem. This acquisition allows the plant to comply with new US regulations and qualify for tax credits.

The plant, known as LG-HY BCM Company, produces cathode materials with a capacity of 66,000 tons per year. The LG Precursor Free (LGPF) process used at the plant has positioned LG Chem as a leading producer in this segment. Toyota Tsusho plans to supply cathode materials to battery manufacturing customers in North America.

LG Chem’s CEO sees Toyota Tsusho’s equity participation as a significant step in enhancing cathode supply competitiveness under US regulations. The company aims to strengthen its position in the battery materials market through global partnerships and high-quality products. LG Chem is expanding its customer base and production facilities in South Korea, China, and the US.

LG Chem has secured significant deals with General Motors, Prime Planet Energy & Solutions, and Toyota Motor Engineering & Manufacturing North America for cathode materials. The company signed a KRW 25 trillion deal with General Motors in 2024 and a KRW 2.9 trillion contract with Toyota in 2023. This strategic positioning reinforces LG Chem’s presence in the battery materials market.

Read more at Yahoo Finance: Toyota acquires 25% stake in LG Chem’s cathode plant