Lotte Chemical to spend 10 tln won by 2030 to boost hydrogen, battery biz

Economy 11:16 May 19, 2022

By Kim Seung-yeon

SEOUL, May 19 (Yonhap) -- Lotte Chemical Corp. said Thursday it will spend a total of 10 trillion won (US$7.85 billion) by 2030 to boost its hydrogen and battery businesses as it ramps up the push for a green energy transition.

The announcement follows a broader plan unveiled in March, in which it rolled out an ambitious goal of achieving 50 trillion won in overall sales by 2030, a 180-percent hike from its 2021 sales, with a focus on hydrogen energy, battery materials and plastic recycling.

Of the 10 trillion won, the company plans to spend 6 trillion won for hydrogen, with an aim to generate 5 trillion won in revenue and have 1.2 million tons of production capacity by 2030, the petrochemical unit of South Korea conglomerate Lotte Group said.

The remaining 4 trillion won will go to the battery component business, primarily the key four materials for lithium ion batteries -- cathode, anode, electrolyte and separator -- with the revenue target of 5 trillion won by 2030, according to the company.

Lotte plans to open a battery materials subsidiary in the United States in the first half of this year to make an inroad into the foreign market.

"We will push for an expansion in petrochemical, high value-added specialty business and overhaul the portfolio to expand hydrogen energy, battery materials and other eco-friendly businesses," Kim Gyo-hyun, CEO and vice chairperson of Lotte Chemical, said at a press conference.

"We intend to achieve the carbon emission cuts by increasing the use of carbon capture technology and introducing more renewable energy," Kim said.

Lotte Chemical will also boost the petrochemical sales to 20 trillion won from 11 trillion won in 2021 and advanced materials sales to 18 trillion won from last year's 7 trillion won.

It will also invest 1 trillion won for recycling and biodegradable plastics to increase the production to over 1 million tons.

Since its founding in 1976, Lotte Chemical has been engaged in the production of synthetic resins and other chemical products used for a wide range of industrial materials, such as architecture, interior design, home appliances and IT devices.

The company has been ramping up the diversification strategy toward green energy business to meet growing global demand for sustainable growth and carbon emission reduction.