LG Chem has partnered with Sinopec, China's largest chemical company, to develop next-generation sodium-ion battery materials.

On the 4th, LG Chem announced that it signed a joint development agreement with Sinopec on October 30 to develop key materials for sodium-ion batteries.

The two companies plan to jointly develop key materials such as cathode and anode materials for sodium-ion batteries, establish a stable supply chain, and secure cost competitiveness. They aim to diversify the sodium-ion battery business model targeting the global energy storage system (ESS) and affordable electric vehicle markets, and expand the scope of cooperation in eco-friendly energy and high-value-added material sectors.

Sodium, a key material for sodium-ion batteries, is easier to obtain and cheaper than lithium. It also reportedly experiences less performance degradation at low temperatures compared to lithium iron phosphate (LFP) batteries and is superior in terms of charging speed and safety. The sodium-ion battery market is projected to grow from 10 GWh this year to 292 GWh by 2034. In particular, China is expected to account for more than 90% of the world's sodium-ion battery production by 2030, drawing attention as a major production base.

LG Chem's strategy is to actively target the global battery materials market by leveraging Sinopec's raw material and process capabilities and resource accessibility. Sinopec is also reportedly planning to expand into global markets, including the United States, through collaboration with large Korean companies.

Collaboration in the battery sector between Korea and China has been steadily progressing. In 2018, LG Chem established a precursor plant and a cathode material plant in China in partnership with Huayou Cobalt, a Chinese cobalt refining company. In September this year, POSCO Future M signed a memorandum of understanding (MOU) with Chinese precursor company CNGR to promote the LFP cathode material business.

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