On August 10th, Huajin New Energy Materials (Quzhou) Co., Ltd., the precursor factory of LG Chemical in Zhejiang Province, and Zhejiang Zheneng Electric Power Co., Ltd., the largest power company in Zhejiang Province, signed a third-party power purchase agreement (PPA) for the annual supply of 50GWh renewable energy. So far, LG Chemistry has realized the RE100 of the whole value chain of battery materials in China.
The Quzhou precursor plant uses 100 per cent of its electricity from renewable energy, reducing RE100, carbon emissions by about 35000 tonnes, equivalent to the carbon emissions of 14000 fuel vehicles a year.
* precursor: it is the front-end material for the production of cathode materials, which is mainly composed of cobalt, nickel, manganese, etc., and can be made into the core material of the battery after the addition of lithium.
This third-party power purchase agreement (PPA) is signed by renewable energy power generation companies, distributors and power users, and obtains renewable energy power at a fixed price. It is widely applicable and flexible, and has been recognized all over the world. Through this agreement, LG Chemical will obtain the supply of renewable energy power at a lower cost than general industrial electricity, ensuring economy while achieving sustainable development.
To respond positively to the RE100 needs of customers such as battery and electric vehicle manufacturers, LG Chemical is focusing on battery material factories to accelerate the use of renewable energy. From Wuxi cathode Materials Factory, which signed a third-party power purchase agreement in China last year, to the Quzhou precursor plant this time, LG Chemical has realized the RE100 of the whole value chain of battery materials in China. In addition, LG Chemical's cathode materials plant in Qingzhou, South Korea, has also achieved 30 per cent of its electricity consumption from renewable energy by participating in the green premium system that South Korea has implemented for the first time.
Since the beginning of this year, LG Chemical has obtained a total of 337.2GWh renewable energy globally through the implementation of third-party power purchase agreements and green premiums, which is equivalent to the annual electricity consumption of about 80, 000 families of four.
"as a leader in ESG, we will actively explore renewable energy use solutions such as third-party power purchase agreements and green premiums to accelerate RE100 in all factories around the world."
-LG Chemical CEO Xin Xuezhe
