Lotte Chemical to invest 602 bln won in advanced materials biz

SEOUL, Feb. 7 (Yonhap) -- Lotte Chemical Corp., the petrochemical unit of South Korean conglomerate Lotte Group, said Monday it is spending 602 billion won (US$502 million) to boost its advanced materials business, including building a new factory for electric vehicle battery materials.

The company said it will spend about 233 billion won to build a new factory in its main domestic production complex in the southwestern city of Seosan to produce high-purity ethylene carbonate (EC) and dimethyl carbonate (DMC) used in electrolyte solvents in lithium-ion batteries.

Electrolyte is a key component in a lithium-ion battery that transports the lithium ions between the cathode and anode. Electrolyte solvents help the lithium ions move smoothly between the electrodes and prevent battery degradation.

Of the investment, 60 billion won will be spent to build a new facility for carbon capture and utilization (CCU), with a plan to begin commercial production in the second half of 2023, Lotte Chemical said.

It will also use 220 billion won to expand its production line for ethylene oxide adduct (EOA), an advanced material used in concrete, and high-purity ethylene oxide (HPEO), a main source of EOA, Lotte Chemical said.

The expansion will increase the company's annual EOA production capacity to 480,000 tons from 330,000 tons.

elly@yna.co.kr
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