LG Chem has announced its strategic growth plan for the next decade.
As articulated by CEO Shin Hak-Cheol at the BofA 2023 Korea & Global EV/EV Battery conference, the company aims to increase its battery materials sales sixfold to KRW 30 trillion ($25.5 billion) by 2030.
LG Chem's future growth engines focus on battery materials, sustainability business, and innovative new medicines.
These areas, which will contribute 21% of total revenue in 2022, are expected to account for 57% by 2030, marking a significant pivot from a petrochemical-centric portfolio to a broader, science-based one.
The company will expand its offerings in separators, carbon nanotubes (CNTs), and cathode materials to become a global leader in battery materials.
As a result, LG Chem expects to increase sales in this sector at a compound annual growth rate of 26%.
The company also plans to strengthen its R&D efforts, focusing on developing innovative materials such as pure silicon anode materials and solid-state battery electrolytes.
In its sustainability drive, LG Chem aims to lead the industry's low-carbon business.
The company will accelerate the transition to recycled, bio/biodegradable, and renewable energy materials.
A key target is the burgeoning market for recycled plastics, which is expected to reach KRW 100 trillion ($84 billion) by 2028.
In pharmaceuticals, LG Chem is preparing to become a global player with plans to introduce five new FDA-approved drugs by 2030.
In addition, the company will strengthen its foothold in the U.S., the world's largest cancer market, by acquiring AVEO, a U.S. company with an FDA-approved drug, FOTIVDA.
In line with its growth strategy, LG Chem is committed to decarbonization and sustainability.
As a result, the company has established an integrated carbon management system, a first in the Korean industry.
This system will guide financial decisions and ensure alignment with LG Chem's commitment to achieving carbon-neutral growth and transition to 100% renewable energy by 2050.