Lotte Chemical Gets Elon Musk’s Battery Business Expansion in the US
Lotte Chemical Gets Elon Musk’s Battery Business Expansion in the US

Lotte Chemical Gets Elon Musk’s Battery Business Expansion in the US

Posted on

Lotte Chemical’s parent company PT Lotte Chemical Titan Tbk (FPNI) 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.

Quoting Lotte Chemical’s official statement received by, Sunday (19/6/2022). Lotte Chemical’s move also aims to raise 50 trillion won (Rp 574 trillion) in sales by 2030. This is done by increasing the proportion of specialized 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 (45.9 trillion rupiah) in the battery material sector by 2030 to generate sales of 5 trillion won (57.4 trillion rupiah),” the statement read.

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.

* Fact or Hoax? To find out the truth of the information circulating, please WhatsApp to the Fact Check number 0811 9787 670 just by typing the desired keyword.

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.

Its demand is expected to reach 3.5 million tonnes for cell and ammonia-fueled 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 two trillion won by investing one trillion won by 2030.

Previously, the Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia was optimistic that Indonesia was one step away from becoming the world’s electric battery producer.

Following that, LG’s commitment to downstream investment in the integrated electric battery industry reached USD 9.8 billion or equivalent to Rp. 142 trillion and will absorb up to 20,000 Indonesian workers.

This statement was made by Bahlil while accompanying President Jokowi in the ceremony for the Implementation Ceremony of the Second Phase of the Integrated Electric Battery Industry in Batang, Central Java, Wednesday (8/6).

“Today we are groundbreaking a big investment. Indonesia must be one of the biggest players in the electric car battery ecosystem. It’s time for Indonesia to think about being known because it has a source of raw material for battery cells for electric vehicles,” said Bahlil.

Minister Bahlil said that the development of this integrated electric vehicle battery ecosystem could be carried out by direct order of the President to the Ministry of Investment. If it is fully implemented, this downstream investment made by LG will provide added value of USD 5.18 billion.

This integrated electric battery industry investment project starts from nickel mining and smelter located in Halmahera, North Maluku to the refinery, precursor and cathode industries. Then, the expansion cell for the battery cell industry to be built at KIT Batang, Central Java, to the electric battery recycling industry.

Meanwhile, LG Energy Solution President Lee Bang Soo expressed his full appreciation for the support from President Joko Widodo and the Minister of Investment. Lee also revealed that the project occupies an area of ​​275 hectares in KIT Batang by applying the latest technology belonging to the LG consortium.

“I am here with a big vision to develop KIT Batang to become the most important electric vehicle industrial area in Southeast Asia. Through the LG Consortium, LG Energy Solution will support KIT Batang to become the world’s electric battery center,” said Lee.

Investment Minister/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia said the process of developing the Integrated Industrial Estate or KIT Batang in Central Java has entered the second phase with a land area of ​​1000 hectares.

Bahlil said that the land will be filled with a number of world-renowned companies, ranging from LG from South Korea to a company from Taiwan, Hon Hai Precision Industry Co. Ltd. (Foxconn). In fact, Tesla, Inc. will also set up its factory in KIT-Batang if the negotiation process goes well.

“In the second stage of 1000 hectares, LG itself enters 200 hectares, then Foxconn enters the second stage, and God willing, if it is from America (Tesla) it will be positive,” said Bahlil while accompanying President Jokowi at the ceremony for the implementation of the second phase of the electric battery industry. Integrated in Batang, Central Java, Wednesday (8/6)

Even so, Bahlil did not reveal further regarding the development of Tesla’s investment plan to Indonesia. Including the land area provided for the company owned by Elon Musk.

Furthermore, Bahlil said he was optimistic that the sales target for the Batang industrial area could reach more than 50 percent of the total area of ​​4,300 hectares by the end of 2023.

“We believe that by the end of 2023 by 2024, our target is that at least 50 percent of the 4,300 ha in Batang will be filled,” he concluded.

Read :   'It is possible that a young garbage man could become the mayor of Manila' - News - Tagalog Newspaper Tabloid
Gravatar Image
I am a person who likes to write and make information related to fruits, because I like and have a mango garden.