- The JV will invest $375M in Toray Industries Hungary Kft.
- Plant construction starts next year, targeting European battery firms.
- LG Chem plans to acquire an additional 20% equity in 30 months.
- The JV aims for 800 million square meters annual production capacity by 2028.
Joint Venture Formation
Toray and LG Chem are forming a joint venture in Nyergesújfalu, Hungary, with an investment of $375 million. The venture, named LG Toray Hungary Battery Separator Kft, will be established with a 50:50 shareholding, with LG Chem planning to acquire an additional 20% equity after 30 months to secure management control.
Plant Construction and Production
The plant will be built on the existing site of Toray Industries Hungary Kft, covering 420,000m². Construction is set to begin next year, with the goal of supplying European battery companies, including LG Energy Solution Poland. The joint venture aims to secure an annual production capacity of over 800 million square meters by 2028.
Strategic Goals
Toray aims to secure a stable customer base in Europe, while LG Chem seeks to penetrate the European market by internalizing fabric technology, a key material for separators. The collaboration will integrate Toray’s fabric technology with LG Chem’s coating capabilities, creating synergies for both companies.
Market Context
The European electronic vehicle market is rapidly growing, with a forecasted CAGR of 38% from 82GWh in 2021 to 410GWh in 2026, according to IHS Markit. The favorable geographical location of Hungary offers excellent logistics and proximity to major customers, including global automobile companies.
