LG

■ Partnership with Toyota Tsusho, acquiring a 25% stake in LG Chem’s Gumi cathode plant as the second largest shareholder
 
■ Strengthened global partnership and U.S. IRA compliance to accelerate market expansion
 
 
SEOUL, September 9, 2025 – LG Chem and Toyota Group are joining forces to step up their cathode materials market strategy. 
 
LG Chem announced today that Toyota Tsusho Corporation had acquired a 25% stake in LG-HY BCM, the company’s cathode materials plant in Gumi, thereby joining as the second-largest shareholder.
 
Toyota Tsusho, the general trading company of the Toyota Group, plays a vital role in Toyota Motor’s raw material procurement.
 
With Toyota Tsusho’s investment, the shareholding structure of the Gumi plant has shifted to LG Chem (51%), Toyota Tsusho (25%) and Huayou Cobalt (24%, down from 49%). This adjustment ensures the venture meets the newly redefined PFE* criteria introduced in July 2025, achieving compliance with the IRA requirements. *PFE (Prohibited Foreign Entity): entities with more than 25% ownership by restricted parties may be excluded from relevant tax credits.
 
Toyota Tsusho plans to supply a portion of the cathode active materials produced at this plant mainly to battery manufacturing customers in North America.
 
Accelerating market penetration with world-class products and strong partnerships
 
LG Chem aims to accelerate its cathode materials strategy by leveraging its globally competitive products and robust industry partnerships.
 
The Gumi cathode materials plant, a key production hub with an annual capacity of 66,000 tons, utilizes the LG Precursor Free (LGPF) process, which eliminates precursors and directly sinters from custom-designed metal feedstocks. This innovation positions LG Chem as a leader in product competitiveness.
 
The company is also expanding its global customer base and supply network, which includes manufacturing facilities in Cheongju and Gumi (Korea), Tennessee (U.S., set to open in the second half of 2026), and Wuxi (China).
 
In 2024, LG Chem secured major global customers, including a KRW 25 trillion cathode materials supply agreement in February — enough to power over 5 million General Motors electric vehicles — and additional cathode orders in September from Prime Planet Energy & Solutions (PPES), a joint venture between Toyota and Panasonic. In 2023, LG Chem also signed a long-term contract, worth KRW 2.9 trillion, to supply cathodes to Toyota Motor Engineering & Manufacturing North America (TEMA), marking its first cathode material partnership with the world’s largest automaker. 
 
LG Chem CEO Shin Hak-cheol said: “Toyota Tsusho’s equity participation marks a pivotal turning point as LG Chem strengthens its cathode supply competitiveness under the U.S. IRA framework. We will further solidify our leadership in the battery materials market on the strength of world-class products and powerful global partnerships.”