AZL General Discussion, page-12251

US-China rivalry heats up over LG batteries


By Park Jae-hyuk
15-09-2022

LG Science Park has become the latest battlefield for the intensifying tech war between the U.S. and China, as the conglomerate's R&D cluster in Seoul has emerged as a key destination for both countries' political leaders visiting Korea.
Amid the fierce rivalry between the world's two largest economies over supremacy in the global supply chain, the political leaders appear to be aiming to boost their countries' ties with LG Group, especially in the electric vehicle (EV) battery industry through their visits to its R&D facility, which accommodates the R&D departments of the group's eight major affiliates, including LG Energy Solution (LGES), the world's No. 2 EV battery maker in terms of sales.
According to industry officials, Thursday, Li Zhanshu, China's third-highest-ranking official and chief of the Standing Committee of the National People's Congress, will visit LG Science Park on Friday, a day after his arrival in Korea with a 66-member entourage, including multiple ministerial-level officials.
His planned visit to the R&D facility will even precede the meeting with his Korean counterpart, National Assembly Speaker Kim Jin-pyo, as well as his meeting with President Yoon Suk-yeol on the same day. Li is scheduled to depart Korea on Saturday.
LG Corp. Vice Chairman Kwon Bong-seok is said to be escorting Li at LG Science Park.
The top Chinese legislator is expected to tour LG Innovation Gallery, which exhibits LG Group's electronics, chemical, robotics, display and battery products. According to diplomats, Li's visit to LG Science Park was fixed as he wanted to visit a Korean conglomerate's R&D facility during his trip.
He is expected to focus mainly on LG's EV battery technologies, given that LGES has expanded its business in China, even though LG Group has downsized its business there since the diplomatic feud over Korea's deployment of the U.S.' THAAD missile defense system in 2016.
Following the construction of the second battery plant in Nanjing last year, LGES agreed with Huayou Cobalt in July to set up a joint venture for battery recycling in China. LGES CEO Kwon Young-soo said at that time: "The recent collaboration enabled stable supply of raw materials and better cost competitiveness. It was also meaningful in terms of ESG management."
As for American political leaders, U.S. Treasury Secretary Janet Yellen visited LG Science Park in July. CEO Shin Hak-cheol of LG Chem, the parent firm of LGES, guided her at that time.
After touring the sustainable gallery exhibiting EV batteries, Yellen emphasized the alliance of Korea and the U.S. in the EV battery industry, criticizing Russia and China for threatening the global economy.
"Working with allies and partners through 'friend-shoring' is an important element of strengthening economic resilience while sustaining the dynamism and productivity growth that comes with economic integration," she said at that time.
According to industry officials, Maryland Governor Larry Hogan, who came to Korea on Tuesday for his stay here until next Wednesday, also plans to visit LG Science Park to attract investment in his state.
Arizona Governor Doug Ducey, who visited Korea earlier this month, is also said to have met with LGES officials to encourage them to fulfill the company's initial plan to invest $1.4 billion to build a cylindrical battery plant in the southwestern state.

https://www.koreatimes.co.kr/www/tech/2022/09/133_336126.html