LG Chem, based in Seoul, said Toyota Tsusho Corporation has acquired a 25% equity stake in its cathode materials subsidiary LG-HY BCM in Gumi, South Korea, making the Toyota Group trading arm the plant’s second-largest shareholder. The revised ownership structure now includes LG Chem (51%), Toyota Tsusho (25%) and Huayou Cobalt (24%).
The company said the new shareholding arrangement ensures the Gumi plant complies with the U.S. Inflation Reduction Act’s updated Prohibited Foreign Entity rules, introduced in July 2025. Toyota Tsusho plans to distribute part of the cathode active materials produced at the site to battery manufacturing customers in North America.
The Gumi plant has an annual production capacity of 66,000 tons and employs LG Chem’s Precursor Free (LGPF) process. This process reportedly eliminates precursors by directly sintering custom-designed metal feedstocks, improving cost efficiency and product competitiveness.
The company said it is expanding its supply network with facilities in Korea, China and the United States, where a Tennessee plant is scheduled to open in 2026. LG Chem also cited major agreements signed in 2023 and 2024, including contracts with General Motors, Toyota Motor Engineering & Manufacturing North America, and Prime Planet Energy & Solutions, a Toyota-Panasonic joint venture.
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Amanda Joshi
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Amanda Joshi has more than 18 years of experience in business-to-business publishing for both print and digital content. Before joining Chemical Processing, she worked with Manufacturing.net and Electrical Contracting Products. She’s a versatile, award-winning editor with experience in writing and editing technical content, executing marketing strategy, developing new products, attending industry events and developing customer relationships.
Amanda graduated from Northern Illinois University in 2001 with a B.A. in English and has been an English teacher. She lives in the Chicago suburbs with her husband and daughter, and their mini Aussiedoodle, Riley. In her rare spare time, she enjoys reading, tackling DIY projects, and horseback riding.