By Diplomacy Journal Lee Kap-soo
LG Chem announced on Sept. 9 that Toyota Tsusho Corporation had acquired a 25% stake in LG-HY BCM, the company’s cathode materials plant in Gumi, thereby joining as the second-largest shareholder.
Toyota Tsusho, the general trading company of the Toyota Group, plays a vital role in Toyota Motor’s raw material procurement.
With Toyota Tsusho’s investment, the shareholding structure of the Gumi plant has shifted to LG Chem (51%), Toyota Tsusho (25%) and Huayou Cobalt (24%, down from 49%). This adjustment ensures the venture meets the newly redefined PFE criteria introduced in July 2025, achieving compliance with the IRA requirements. *PFE (Prohibited Foreign Entity): entities with more than 25% ownership by restricted parties may be excluded from relevant tax credits.
Toyota Tsusho plans to supply a portion of the cathode active materials produced at this plant mainly to battery manufacturing customers in North America.
LG Chem aims to accelerate its cathode materials strategy by leveraging its globally competitive products and robust industry partnerships.
The Gumi cathode materials plant, a key production hub with an annual capacity of 66,000 tons, utilizes the LG Precursor Free (LGPF) process, which eliminates precursors and directly sinters from custom-designed metal feedstocks. This innovation positions LG Chem as a leader in product competitiveness.
The company is also expanding its global customer base and supply network, which includes manufacturing facilities in Cheongju and Gumi (Korea), Tennessee (U.S., set to open in the second half of 2026), and Wuxi (China).
