TOKYO (dpa-AFX) - Lithium-ion battery maker LG Energy Solution Ltd., a split-off from LG Chem, announced Thursday that it has established a joint venture with Toyota Tsusho Corp., a member of Japanese auto major Toyota Motor Corp. (TYT.L, TM), focused on battery recycling in the United States.
Under the deal between LG Energy Solution Michigan and Toyota Tsusho America, the JV, Green Metals Battery Innovations, LLC, will construct and operate a pre-processing plant in Winston-Salem, North Carolina. The plant will extract black mass, a key material for battery recycling.
The new plant will handle pre-processing operations by dismantling and shredding battery production scrap to extract black mass which contains valuable raw metals such as nickel, cobalt, and lithium.
The facility is scheduled to commence operations in 2026, with a view to achieve maximum annual processing capacity of 13,500 tons of scrap, which is equivalent to over 40,000 automotive batteries.
In the initial stage of the JV's operation, LG Energy Solution will supply scrap generated during the production of EV batteries for Toyota Motor.
The extracted black mass will later undergo a separate post-processing stage to recover raw materials contained within. The JV further plans to establish a battery-to-battery closed-loop system where those raw materials are circulated as recycled resources for new battery materials. It is expected to advance a true circular economy in the battery supply chain.
LG Energy Solution said it intends to secure a competitive recycling infrastructure in the region with its partnership with a battery recycler equipped with advanced pre-processing technologies and operational know-how.
With the collaboration, the companies aim to drive carbon emissions down through circular economy initiatives.
Chang Beom Kang, CSO of LG Energy Solution said, 'This joint venture will not only help secure a stable supply of key battery materials but also enhance the competitiveness of our recycling business in North America. We are fully committed to leading the recycling market through innovative and differentiated technologies.'
In South Korea, LG Energy Solution shares closed Thursday's regular trading at 312.32 Korean Won, up 1.17 percent.
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