Overview

LG Chem is a South Korean chemical company headquartered in Seoul and affiliated with the LG Group. It originated as Lucky Chemical Industrial Corporation, a business established in 1947 that initially manufactured cosmetics and other consumer-oriented chemical products. Over time, the company developed into one of South Korea's largest chemical enterprises and expanded its activities across basic chemicals, polymers, specialty materials, electronics-related materials, batteries, and pharmaceuticals. The company is now primarily a business-to-business supplier. Its consumer-products activities were separated from the chemical company and became part of LG Household & Health Care, allowing LG Chem to concentrate on industrial materials, technology inputs, and life-science products. Its principal continuing business areas are petrochemicals, advanced materials, and life sciences. The petrochemicals business produces a broad range of commodity and specialty chemicals. Its portfolio includes acrylonitrile butadiene styrene, styrene-acrylonitrile resin, polyvinyl chloride, plasticizers, specialty additives, alcohols, polyolefins, acrylic acid, synthetic rubber, styrenics, performance polymers, engineering plastics, elastomers, conductive resins, and related intermediates. These materials are used in construction, packaging, transportation, consumer goods, electronics, and industrial manufacturing. Advanced materials form a technology-oriented part of the business. LG Chem supplies display and optical films, polarizers, printed circuit materials, toners, and other functional materials. Its display portfolio has included multilayer LCD polarizing films and film-type patterned retarders used in three-dimensional display applications. The division positions the company as a materials supplier to electronics and display manufacturers rather than as a consumer electronics brand. LG Chem also built a major energy-materials and battery business. It developed and began mass production of lithium-ion batteries in South Korea in 1999, supplying mobile-device and automotive applications. Its automotive battery activities supported vehicles including the Chevrolet Volt, Ford Focus Electric, and Renault ZOE. In 2020, the company announced plans to separate and list its energy business as LG Energy Solution. That separation changed the structure of the group: LG Chem continued to focus on chemical and battery-materials activities, while LG Energy Solution became the dedicated battery-cell company. The company has maintained a substantial international footprint. The referenced company profile describes eight factories in South Korea and 29 business locations in 15 countries, including an overseas holding company, manufacturing subsidiaries, marketing subsidiaries, representative offices, and research and development centers. International expansion has included battery production in China, an electric-vehicle battery plant in Michigan, and further research activity in Europe. Life sciences is another significant area. LG Chem expanded beyond industrial chemicals through pharmaceutical and biotechnology activities, including its acquisition of U.S. biotechnology company AVEO Pharmaceuticals in 2023. AVEO's principal focus included treatments for renal cell carcinoma. In 2024, LG Chem also announced a planned cathode-material supply relationship with Prime Planet Energy & Solutions, the Toyota-Panasonic battery joint venture, illustrating its continuing emphasis on battery materials after the energy-solution business separation. LG Chem's identity is therefore that of a diversified industrial technology company rather than a consumer-facing product brand. Its strategic profile combines large-scale petrochemical production with higher-value electronic materials, cathode and other battery materials, and pharmaceuticals. The company has also faced serious safety incidents, including the 2020 Visakhapatnam gas leak at its Indian subsidiary and…

History

LG Chem traces its origins to Lucky Chemical Industrial Corporation, founded in South Korea in 1947 by Koo In-hwoi. The original business manufactured cosmetics, reflecting the early consumer-products orientation of the enterprise that later became part of the LG Group. Through successive decades, the company broadened its chemical capabilities and moved into industrial materials, polymers, electronics inputs, and other higher-value businesses. The company developed into a major Korean chemical producer by combining large-scale petrochemicals with specialty materials. Its petrochemical activities came to include common and engineered plastics, synthetic rubber, acrylic and alcohol products, polyolefins, plasticizers, additives, elastomers, and performance polymers. This expansion gave LG Chem a role in supply chains serving construction, packaging, transportation, electronics, and general manufacturing. A second major phase involved the development of materials for displays and electronic components. LG Chem supplied optical films, LCD polarizers, film-type patterned retarders, printed circuit materials, toners, and related products. These businesses strengthened its position as a technology-materials supplier within the wider LG ecosystem and to external electronics manufacturers. LG Chem entered lithium-ion battery production and completed development of South Korea's first such batteries in 1999. It subsequently produced batteries for mobile devices and electric vehicles. Its automotive customers and applications included the Chevrolet Volt, Ford Focus Electric, and Renault ZOE. The company expanded manufacturing and research internationally, including an electric-vehicle battery plant in Holland, Michigan, and battery-production plans in China. The Michigan operation was associated with Compact Power and later operated through LG Chem's U.S. battery subsidiaries. In September 2020, LG Chem announced that it would separate its energy business into a new company, LG Energy Solution, with a planned public listing. The change represented a major corporate reorganization: battery-cell operations became concentrated in the new energy company, while LG Chem retained its petrochemical, advanced-materials, battery-materials, and life-science activities. LG Chem has also diversified into life sciences. In 2023 it acquired AVEO Pharmaceuticals, a U.S. biotechnology company associated with renal-cell-carcinoma treatments, for a reported transaction value of US$571 million. Because financial information requires time context and a source, this figure is recorded only in the historical narrative rather than as an unsourced current financial metric. The company maintains a global operating network. The referenced profile identifies eight South Korean factories and 29 business locations in 15 countries, including overseas manufacturing subsidiaries, marketing subsidiaries, representative offices, and research centers. In 2024, LG Chem announced a cathode-material supply plan involving Prime Planet Energy & Solutions and opened a German research and development center focused on environmentally friendly and next-generation technologies. LG Chem's history also includes serious industrial and environmental-safety incidents. On 7 May 2020, a gas leak at the LG Polymer plant near Visakhapatnam, India, killed 12 people, hospitalized more than 300, and prompted the evacuation of nearby communities. On 19 May 2020, an explosion involving an alkylaluminum-based catalyst powder at the Seosan plant killed a researcher and injured two additional workers. These incidents, together with the 2019 trade-secrets litigation against SK Innovation, are significant non-commercial events in the company's public record.

2024
Cathode-material supply plan with PPES
[1]LG Chemen.wikipedia.org
LG Chem announced plans to supply cathode materials to Prime Planet Energy & Solutions.
2024
German research center opened
[1]LG Chemen.wikipedia.org
The company opened an overseas research and development center in Germany for environmentally friendly and next-generation technologies.
2023
AVEO Pharmaceuticals acquisition
[1]LG Chemen.wikipedia.org
LG Chem acquired U.S. biotechnology company AVEO Pharmaceuticals, expanding its life-sciences portfolio.
2020
Energy business separation announced
[1]LG Chemen.wikipedia.org
LG Chem announced plans to separate its energy business as LG Energy Solution.
2019
Trade-secrets lawsuit against SK Innovation
[1]LG Chemen.wikipedia.org
LG Chem sued SK Innovation over alleged misappropriation of electric-vehicle battery manufacturing trade secrets.
2013
Michigan battery plant begins manufacturing
[1]LG Chemen.wikipedia.org
The LG Chem Michigan facility in Holland began manufacturing advanced battery cells for electric and hybrid vehicles.
1999
Lithium-ion battery development and mass production
[1]LG Chemen.wikipedia.org
LG Chem completed development and began mass production of lithium-ion batteries in South Korea.
1947
Origin as Lucky Chemical Industrial Corporation
[1]LG Chemen.wikipedia.org
Koo In-hwoi established the predecessor company, which initially manufactured cosmetics and other consumer chemical products.

Products and positioning

A global business-to-business materials and life-sciences company combining petrochemical scale with advanced electronics materials, battery materials, and pharmaceutical capabilities.

Petrochemicals
Petrochemicals and polymers
LG Chem's petrochemical portfolio ranges from basic distillates and intermediates to specialty polymers. It includes ABS, SAN resin, PVC, plasticizers, specialty additives, alcohols, polyolefins, acrylic acid, synthetic rubber, styrenics, performance polymers, engineering plastics, elastomers, and conductive resins. These products supply manufacturers in packaging, construction, transportation, electronics, and industrial goods.
Advanced materials
Advanced display and optical materials
The advanced-materials business supplies optical and display components including LCD polarizers, optical films, film-type patterned retarders, printed circuit materials, and toners. Polarizers are multilayer films used with TFT-LCD panels to control transmission of backlight, while patterned-retarder films support three-dimensional display systems.
Energy solutions · 1999
Lithium-ion batteries
LG Chem developed and mass-produced lithium-ion cells for mobile and automotive applications. Its battery technology was used in vehicles including the Chevrolet Volt, Ford Focus Electric, and Renault ZOE. The energy business was subsequently separated from LG Chem and organized under LG Energy Solution.
Advanced materials
Battery cathode materials
LG Chem continues to participate in the battery-materials supply chain, including cathode materials for electric-vehicle and other rechargeable-battery applications. In 2024, it announced a planned supply relationship with Prime Planet Energy & Solutions, linking its materials business to a Toyota-Panasonic battery joint venture.
Life sciences · 2023
Life-science and pharmaceutical products
LG Chem's life-sciences activities cover pharmaceutical and biotechnology products. Its 2023 acquisition of AVEO Pharmaceuticals expanded the group’s presence in biotechnology and oncology, including products and development capabilities associated with renal cell carcinoma.

Controversies

2021
Hyundai confirms battery-replacement recall for electric vehicles
In February 2021, Hyundai confirmed a recall involving battery replacements for the Kona Electric, Ioniq EV and Elec City bus. According to the report, the recall covered 82,000 vehicles worldwide. The article cited an investigation finding the possibility of short circuits in certain defective battery cells produced at LG Energy Solution's Nanjing plant, which could lead to fires. The recall was linked to battery cells supplied for these Hyundai electric models.
Source
2021
LG Chem agrees to pay GM $1.9 billion over Bolt recall costs
General Motors said it reached an agreement with LG Chem for LG Chem to pay $1.9 billion to compensate GM for costs associated with the Chevrolet Bolt battery recall.
Source
2020
Visakhapatnam gas leak
On 7 May 2020, a gas leak at the LG Polymer plant near Visakhapatnam, India, killed 12 people, hospitalized more than 300, and led to the evacuation of approximately 3,000 people from surrounding communities. The incident occurred as the facility was preparing to resume operations after pandemic-related restrictions were relaxed.
Source
2020
Seosan plant explosion
On 19 May 2020, an alkylaluminum-based catalyst powder exploded while being transported in the packing area of LG Chem's Seosan plant. The material was exposed to air, causing a fire. One researcher died and two workers suffered second-degree burns.
Source
2019
Trade-secrets dispute with SK Innovation
LG Chem sued SK Innovation in 2019, alleging that confidential information concerning electric-vehicle battery manufacturing had been taken and used by its rival.
Source
2019
LG Chem files US patent lawsuits against SK Innovation
LG Chem stated that it filed lawsuits with the U.S. International Trade Commission and the U.S. District Court of Delaware against SK Innovation and its U.S. affiliate. According to LG Chem, the suits allege infringement of LG Chem's lithium-ion battery patents. The company's statement identifies the two forums where the actions were brought and the parties named as defendants, but does not specify further details of the claims.
Source

Brand decisions

2024
Expand battery-materials cooperation with PPESStrategy
Background
LG Chem continued developing its battery-materials business after the separation of its battery-cell operations.
Action taken
The company announced plans to supply cathode materials to Prime Planet Energy & Solutions.
Aftermath
The announcement reinforced LG Chem's role as a materials supplier to electric-vehicle battery manufacturers.
Source
2023
Acquire AVEO PharmaceuticalsM&A
Background
LG Chem sought to expand its life-sciences and biotechnology activities beyond its established chemical and materials businesses.
Action taken
LG Chem acquired U.S. biotechnology company AVEO Pharmaceuticals.
Aftermath
The acquisition broadened LG Chem's pharmaceutical and oncology capabilities, including activities associated with renal cell carcinoma.
Reported acquisition value. US$571 million (2023 acquisition)
Source
2020
Separate the energy business as LG Energy SolutionM&A
Background
LG Chem's battery operations had become a major business alongside petrochemicals, advanced materials, and life sciences.
Action taken
The company announced plans to separate and publicly list the energy division under the LG Energy Solution name.
Aftermath
The reorganization created a dedicated battery-cell company and left LG Chem more focused on chemicals, advanced materials, battery materials, and life sciences.
Source

Recent events

2021-12-15
LG Energy Solution and LG Chem invest in Li-Cycle[5]LG新能源与LG化学投资Li-Cyclefinance.sina.com.cn
Reported: 2021-12-15
LG Energy Solution and LG Chem announced a strategic investment of $50 million in Li-Cycle, with each company contributing $25 million to acquire Li-Cycle common shares.
Unconfirmed
LG Chem agrees to pay GM $1.9 billion over Bolt recall costs[4]LG Chem agrees to pay GM $1.9 billion over Bolt recall costsauto.sina.com.cn
General Motors said it reached an agreement with LG Chem for LG Chem to pay $1.9 billion to compensate GM for costs associated with the Chevrolet Bolt battery recall.
2021-09-14
LG Chem and ADM announce bioplastics joint venture[6]LG Chem 与 ADM 宣布成立生物塑料合资企业econotimes.com
Reported: 2021-09-14
LG Chem announced a joint venture with Archer Daniels Midland to produce corn-based bioplastic. The companies said the venture was set to launch in the United States in the first quarter of 2022.
2021-05-17
LG Chem and DeFu Technology agree to long-term copper-foil cooperation[7]LG化学与德福科技同意开展铜箔长期合作finance.sina.com.cn
Reported: 2021-05-17
LG Chem said it had signed a memorandum of understanding with DeFu Technology to establish a long-term cooperation relationship in the copper-foil business.
2021-05-16
LG Chem buys shares in DeFu Technology[7]LG化学与德福科技同意开展铜箔长期合作finance.sina.com.cn
Reported: 2021-05-17
LG Chem said it purchased shares worth 40 billion won in Chinese copper-foil manufacturer Jiujiang DeFu Technology to help secure a stable supply of a key battery material.
2021-03-23
LG Chem and Innerbottle agree to launch plastic retrieval service[8]LG化学与Innerbottle达成协议推出塑料回收服务koreatimes.co.kr
Reported: 2021-03-23
LG Chem and Innerbottle signed an agreement to start a door-to-door service in which residents leave used plastic containers outside their homes for collection. LG Chem will recycle the retrieved plastic into raw materials, which Innerbottle will use to make containers.
2021-02-24
Hyundai confirms battery-replacement recall for electric vehicles[3]Hyundai confirms battery-replacement recall for electric vehiclescnet.com
Reported: 2021-02-24
Hyundai confirmed a recall involving battery replacements for the Kona Electric, Ioniq EV and Elec City bus. The article reports that the recall covers 82,000 vehicles worldwide and cites an investigation finding the possibility of short circuits in certain defective battery cells produced at LG Energy Solution’s Nanjing plant, leading to fires.
2021-02-01
Shanshan completes mainland closing for LG Chem polarizer assets[9]杉杉股份完成LG化学偏光片资产中国大陆交割finance.sina.com.cn
Reported: 2021-02-03
Shanshan's mainland closing for the LG Chem polarizer assets occurred on February 1, 2021. Shanshan began exercising actual control over the assets covered by that closing; the separate Taiwan closing remained pending approval.
2020-12-29
Korea approves Shanshan's LCD polarizer asset acquisition[10]韩国批准杉杉股份收购LCD偏光片资产finance.sina.com.cn
Reported: 2020-12-29
Shanshan announced that the Korea Fair Trade Commission had approved the business-concentration matter related to its acquisition of LG Chem's LCD polarizer business and related asset interests.
2020-12-01
LG Chem spins off its battery business into LG Energy Solution[11]LG化学分拆电池业务成立LG新能源finance.sina.com.cn
Reported: 2020-12-01
LG Energy Solution was formally established as a battery company spun off from LG Chem's battery business.

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