MOSCOW (MRC) -- Geely Automobile Holdings Ltd. and South Korea's LG Chem Ltd. have formed a joint venture to produce batteries for electric vehicles, reported MorningStar.
Geely's unit Shanghai Maple Guorun and LG Chem will hold a 50% stake each in the joint venture and its registered capital will be USD188 million, the Chinese carmaker said in a stock exchange statement.
The joint venture will leverage the expertise of both companies to manufacture batteries for new energy vehicles in China and ensure a stable supply in the future as the government stresses on reducing emissions, Geely said.
As MRC wrote previously, LG Chem is planning to spend USD2.4-billion to expand its naphtha cracking center (NCC) and polyolefin (PO) plant in Yeosu, South Korea. The project, which will expand the NCC and PO facility by 800,000 t/y each, is expected to be completed in the second half of 2021.
LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
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