[Mediapen=Na Gwang-ho] LG Chem and Belgium-based Umicore concluded a strategic supply agreement for NMC(Nickel Manganese Cobalt) cathode materials. This supply agreement takes effect in 2020 and covers a total volume of 125,000 metric tonnes, which is enough to produce 1 million EV batteries.

This supply agreement will support LG Chem in meeting the growing demand for rechargeable lithium-ion batteries by allowing long driving ranges, faster charge and low battery degradation.

Cathode materials will mainly be supplied from Umicore’s greenfield facility in Poland, currently under construction to be completed in 2020. Until then, Umicore’s production facilities in South Korea and China will supply the materials.

“We successfully secured large-scale cathode materials, the key for batteries in line with the explosive growth of EV battery market in Europe,” said Kim Jong-hyun, head of LG Chem’s battery business division.

According to market research by B3, the EV battery market is to surge from this year’s 116GWh to 569GWh in 2025. The demand for its key cathode material will also explode.