(Yicai Global) May 20 -- Shanghai-based Semcorp will provide up to USD617 million worth of lithium battery isolation membranes to South Korea's LG Chem over the next five years.
The pair has signed a five-year supply and marketing contract for the battery separators in recent days, Semcorp parent Yunnan Energy New Materials Group recently announced.
The contract signals the advance of the company -- officially known as Shanghai Energy New Materials Technology -- in expanding its overseas market for lithium battery isolation membranes. It will also consolidate its leading position in the field and carve it out more market share, per the announcement.
Seoul-based LG Chem, one of the world's ten-largest lithium battery makers, invested USD2 billion in a power battery plant with an annual capacity of 32 gigawatt hours in Nanjing, capital of eastern China's Jiangsu province. The plant broke ground last October and the first stage will begin production this October, with the entire plant to reach its targeted output in 2023.
Well-known LG Chem lithium battery clients include South Korea's Hyundai Motor, Sweden's Volvo Cars, the US' General Motors and Chrysler brand maker FCA US, as well as France's Groupe Renault.
LG Chem also signed a long-term lithium hydroxide and lithium carbonate supply contract with Hong Kong-based non-ferrous ore miner Gan Feng International in September.
Editor: Ben Armour