With the aim of creating an unbroken closed-loop system spanning the entire lifecycle of lithium batteries and fostering stronger collaboration along the industrial chain, a significant partnership was solidified on August 8, 2023. This collaboration involves Huayou Cobalt's subsidiary, Zhejiang Huayou Recycling Technology Co., Ltd. (hereinafter referred to as "Huayou Recycling"), Quzhou Huayou Resource Recycling Technology Co., Ltd., and LG Group's subsidiary, LG Energy Solution. The culmination of this endeavor was marked by the formal signing of a joint venture agreement. Two joint venture entities are to be established, specializing in pre-processing and metallurgical regeneration, located in Nanjing and Quzhou respectively.
The official signing ceremony took place within the headquarters R&D building of Huayou Cobalt. Notable attendees included Kim Dong-soo, Chief of LG Energy Solution, Chen Xuehua, Chairman of Huayou Cobalt, and Bao Wei, Assistant to the President, Vice President of Huayou Recycling Industry Group. This gathering marked the completion of the joint venture agreement, accompanied by expectations for the promising collaboration ahead. The construction of the joint venture companies engaged in the recycling and processing of used batteries, is set to unfold across two distinct phases.
Kim Dong-soo expressed a genuine hopes for the forthcoming collaboration between the two parties. He underlined that the partnership between Huayou and LG has transcended from mere cooperation on cathode materials to encompass the entire industry chain. He expressed his desire for both sides to be frank with each other, ultimately becoming best partners in the endeavor.
Chairman Chen Xuehua reflected on the enduring cooperation between the two sides, highlighting the establishment of a stable and fruitful partnership, which has evolved into a mutually beneficial alliance, characterized by a shared commitment to development. Building upon the successes of their past collaborations, he expressed his aspiration for both parties to seize growth opportunities and contribute significantly to the development of the industry.
Huayou Recycling has a comprehensive closed-loop system for used batteries, and has core advantages in the recycling, R&D technology and cooperation model. LG Energy Solution, as a prominent manufacturer of power batteries in South Korea, will provide used batteries from its Chinese facilities to Huayou, establishing a closed-loop coopertion model with Huayou.
The creation of the two joint venture companies will effectively empower LG Energy Solution in shaping a closed-loop recycling, which aims to maximize the residual value of used batteries while ensuring the economical acquisition of recycled materials and metals. Concurrently, LG Energy Solution's battery resources will integrate into Huayou Recycling's ecosystem, guaranteeing a consistent supply of resources from the source. This expansion will lead to heightened collaboration channels, ultimately resulting in an encompassing internal and external “closed-loop recycling”.
Both parties plan to leverage these joint venture entities as a strategic foundation for their strategic cooperation in the future. This will involve a continuous amalgamation of their respective strengths, coupled with a gradual extension of their reach into overseas battery recycling initiatives. The joint effort will further enhance the development of recycling systems, fostering a self-sustaining ecological cycle that contributes to the evolution of green and low-carbon transformations.