Toyota investment helps LG Chem comply with US regulations

LG Chem said Tuesday that Japan's Toyota Tsusho has become the second-largest shareholder in its cathode materials plant in Gumi, North Gyeongsang Province. Toyota Tsusho, a trading company and member of the Toyota Group, acquired a 25 percent stake from China's Huayou Cobalt, which previously held 49 percent. With Huayou Cobalt becoming the plant's third-largest shareholder — holding a 24 percent stake — LG Chem is now in compliance with the recently revised U.S. Inflation Reduction Act (IRA), which excludes companies from tax credits if prohibited foreign entities own more than 25 percent of their shares. "Toyota Tsusho's equity participation marks a pivotal turning point as LG Chem strengthens its cathode supply competitiveness under the U.S. IRA framework," LG Chem CEO Shin Hak-cheol said. "We will further solidify our leadership in the battery materials market on the strength of world-class products and powerful global partnerships." Toyota Tsusho plays a vital role in Toyota Motor's raw material procurement. According to LG Chem, the Japanese trading firm will supply a significWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times