Huayou Cobalt Plans To Join Hands With LG Chem To Build A New Energy Lithium Electric Materials Project

Hua you Co announced that the company's holding subsidiary Ba Mo Technology intends to purchase 10,281,218 ordinary shares issued by LGBCM with 51,4609 billion won (about 275 million yuan). Upon completion of the subscription, LG Chem will hold 51% of LGBCM's equity and BA Mo Technology will hold 49% of LGBCM's equity.

LGBCM plans to build an annual production capacity of 66,000 tons of terpolymer cathode materials with a total investment of 437.1 billion won (about 2.337 billion yuan). 60% of the total investment (262.3 billion won, about 1.403 billion yuan) will be invested by PALMER Technology and LG Chemical according to the agreed time, among which Palmer Technology will contribute 128.5 billion won (about 687 million yuan) and LG Chemical 133.8 billion won (about 716 million yuan); About 40 percent of the total investment (174.8 billion won, or 935 million yuan) will be raised by the target companies through borrowing or issuing corporate bonds.

The joint venture between the company and LG Chem to build new energy lithium electric materials is an arrangement made by the company in accordance with its mid - and long-term development strategy.