Seoul: LG Chem Ltd., South Korea's leading chemical company, announced an agreement with China's state-run oil and gas firm Sinopec Corp. to co-develop battery materials and explore new business opportunities.

According to Yonhap News Agency, the partnership between the two companies will focus on the co-development of cathode and anode materials for sodium-ion batteries (SIBs), establishing a stable supply chain, and enhancing price competitiveness. Sodium-ion batteries are noted for their easier access to raw materials and competitive pricing compared to lithium-ion batteries. Additionally, they provide more stable performance in low-temperature environments compared to lithium iron phosphate (LFP) batteries.

LG Chem's Vice Chairman and CEO, Shin Hak-cheol, emphasized the significance of the collaboration with Sinopec, stating that it would enable LG Chem to develop next-generation battery materials promptly and strengthen its battery portfolio to align with customers' future strategies.

The sodium-ion battery market is expected to grow substantially, with projections indicating an average annual growth rate of 45 percent. It is anticipated to reach 292 gigawatt hours (GWh) by 2034, up from the current 10 GWh. China is predicted to maintain its position as the leading production base, accounting for over 90 percent of global sodium-ion battery output by 2030.