LG Chem announced that Toyota Tsusho Corporation acquired a 25-percent stake in the LG-HY BCM cathode material factory in Gumi, South Korea. Toyota Tsusho acts as the central procurement platform for raw materials within the Toyota group. This acquisition makes Toyota Tsusho the second-largest shareholder after LG Chem. Chinaʼs Huayou Cobaltʼs share thus falls from 49 percent to 24 percent.
Compliance with Inflation Reduction Act
According to LG Chem, the new ownership structure meets the United Statesʼ newly defined PFE criteria for July 2025. With the reduction in Chinese ownership, the factory is no longer considered a “prohibited foreign entity” and remains eligible under the United Statesʼ Inflation Reduction Act. Built in 2023, the Gumi plant has an annual capacity of 66,000 tons of cathode material. LG Chem states that the plant uses the proprietary LG Precursor Free process, which eliminates the need for precursors by directly sintering custom-designed metal feedstocks. Toyota Tsusho plans to allocate some of the production to battery customers in North America. This investment provides the group with direct access to cathode materials relevant to electric vehicle manufacturing in the United States.
