Page 151 - CW E-Magazine (12-3-2024)

News from Abroad

ELECTRIC MOBILITY
LG Energy Solution inks LFP battery material

sourcing deal with Chinese firm

Korea’s LG Energy Solution has cantly cheaper than nickel-cobalt-man-
signed a long-term supply deal with ganese (NCM) batteries in which
China’s Changzhou Liyuan New Energy Korean makers hold firmer standing –
Technology, as it seeks to bolster its for energy storage systems at its
lithium iron phosphate (LFP) battery Nanjing plant last year.
business.
The battery maker plans to begin
The latest announcement comes as the production of LFP batteries for EVs
LG Energy Solution seeks to diversify starting the latter half of 2025. Its goal
its product portfolio with cheaper LFP closed. The companies will discuss an is to diversify its product portfolio into
batteries amid a global slowdown of additional supply deal depending on the cheaper batteries, as Chinese battery
electric vehicle (EV) demand. market situation in the future. makers are aggressively expanding their
market share. While Korean companies
Under the five-year cathode mate- Changzhou Liyuan New Energy were mainly focusing on NCM batteries,
rial supply contract, the Nanjing-based Technology, founded in 2021, has a Chinese battery makers have been
company will supply LG Energy Solu- battery material production capacity solidifying their leadership in LFP.
tion with some 160,000 tons of cathode of 310,000 tons per year. The company Around 90 percent of the world’s LFP
materials, which can produce batteries has a 30,000-ton production facility batteries were made by Chinese com-
to power one million EVs with a in Indonesia and plans to expand the panies, with Contemporary Amperex
driving range of more than 400 kms per plant’s capacity to 120,000 tons. Technology and BYD currently racing
single charge. for the top two spots, according to Korea
LG Energy Solution began produc- Institute for International Economic
The value of the deal was not dis- ing LFP batteries – which are signifi- Policy.

DECLINE IN FAIR VALUE
Lanxess flags impairment charges of around half

a billion euros in 2023

German speciality chemicals firm, Lanxess said it would also have to interest, taxes, depreciation, and amorti-
Lanxess, said on Tuesday it will record reduce the value of its minority interest zation pre exceptionals, nor are they
special charges in its balance sheet in plastics joint venture Envalior, cash relevant, Lanxess said.
for the past year, due to a “goodwill resulting in a low to medium triple-digit
impairment” and an “adjustment of at- million-euro amount. Envalior, which The impairment analyses are not
equity book value” of its minority combined the businesses from DSM completed and are expected to be pub-
interest in Envalior. Engineering Materials and Lanxess lished along with the company’s full-
High Performance Materials, is jointly year 2023 results on March 14, it said.
The goodwill impairment charge owned by Lanxess and global private
amounted to Euro 413-mn, Lanxess equity firm Advent International. While the Envalior exit process is
said. It applies to two of the group’s not directly impacted by a book write
units – flavours & fragrances and poly- Neither the recognition of the im- down, it ultimately could represent an
mer additives – due to weak demand, pairment charges nor the reduction of indication that any further net proceeds
especially in 2023 and 2024, the the value of the company’s minority in- from the sale of its stake could be more
company added. terest have an effect on earnings before limited, analysts Jefferies said.

Chemical Weekly March 12, 2024 151

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