LG Chem plans to build its fourth carbon
nanotube (CNT) manufacturing facility to fulfil the demand of next generation
material for EV batteries.
South Korea: On June 1st, 2023,
LG Chem announced that it has started construction of its fourth carbon
nanotube (CNT) plant at its Daesan Complex, 80 kilometers southwest of Seoul. LG
Chem’s Carbon Nanotube fourth plant construction is expected to get completed
in 2024 and is slated for operation in 2025 and will contribute to doubling LG
Chem’s annual CNT production capability to 6,100 tons. Before this, LG
Chem’s 1,200-tons CNT third plant in Yeosu was also recently put into full
operation, enabling LG Chem to secure a total production of 2,900 tons/year,
adding on to the existing 1,700 tons. The purpose is to gain a competitive edge in the
rapidly growing global CNT market driven by cathode materials and electric
vehicle (EV) batteries.
LG Chem aspires to become the global market
leader by expanding its production capacity and achieving competitive
excellence in quality. CNT materials produced by LG Chem will be supplied as
conductive additives to battery makers including the current global EV battery
market leader LG energy Solution, with plans for usage to be expanded to a
broader range of industries. When used as conductive additives for cathodes,
CNT can reduce the volume of conductive additives in batteries by nearly 30 %
while achieving 10 % more conductivity than carbon black. Additionally, LG Chem
has recently started supplying CNT-added, metal-replacing electrostatic coating
plastics to Japanese automaker Mitsubishi Motors, which is now applying the
material to the front fenders of its three vehicle models. Furthermore, this
plastic can be varied and customized to make other types of automotive parts
such as bumper panel, hood, tailgate, fuel doors, and side mirrors.
According to President of LG
Chem’s Petrochemical Business, CNT is a material that has a great potential for market, with
the nation’s largest CNT production capacity, we will continue building a
strong competitive advantage in the battery materials sector and actively
explore new business opportunities by moving faster than our competitors.
Furthermore, we are continuously increasing sales from newly secured battery
customers including LG Energy Solutions and are strongly committed to becoming
a trustworthy world-class CNT supplier for global automakers.
According to TechSci Research, the expansion of LG Chem CNT
production capacity gains a strong competitive advantage in the global CNT
market which is rapidly evolving around electric vehicle (EV) battery
materials. TechSci Research believes that LG Chem's investment signifies its
commitment to addressing the demand of CNT to automakers. CNT play a crucial
role in battery performance and reliability, and by investing in increasing the
production of carbon nano tube, LG Chem is aligning itself with the industry's demand.
This this will further strengthen LG Chem's position as one of the most
reliable suppliers in the region. Moreover, the global carbon nano tube market
is projected to witness significant growth in the coming years, driven by
factors such as the rapid adoption of electric vehicles and the increasing
demand for renewable energy storage. TechSci Research sees LG Chem's CNT
expansion as a strategic move to capitalize on these market opportunities and
expand its presence in the burgeoning battery industry. Also, CNT have the
potential to improve battery performance by utilizing as an anode material due
to their unique structural, mechanical, and electrical properties. Thus, CNT-based
batteries can deliver higher capacity and longer lifespan and CNT is also used
as an attractive conductive additive of next-generation anode, lithium-sulfur
and solid-state batteries. This can enhance their competitiveness
and profitability in the market.
According to a report published
by TechSci Research, “Global
Carbon Nanotubes (CNT) Market By
Type (Multi-Walled Carbon Nanotubes (and Single-Walled Carbon Nanotubes), By
Method (Chemical Vapor Deposition, Catalytic Chemical Vapor Deposition, High
Pressure Carbon Monoxide Reaction and Others), By Application (Structural
Polymer, Conductive Polymer, Conductive Adhesives, Metal Matrix Composites,
Li-ion Battery Electrodes), By End User (Electronics & Semiconductors,
Advanced Materials, Chemical & Polymers, Batteries & Capacitors,
Aerospace & Defense, Energy, Medical and Others), By Company, By Region,
Forecast & Opportunities, 2028”, Global
carbon nanotubes (CNT) market is expected to grow at a CAGR of around 15%
during the forecast period. The global carbon nanotubes (CNT) market is driven
by surging requirement for less carbon releasing vehicles owing to increasing
awareness regarding low emission and energy efficient technologies. Moreover,
rising product demand from various end user industries such as electronics,
plastics, among others is positively impacting the growth of market during the
forecast period.