South Korea’s LG Chem Ltd., the parent of world’s No. 2 battery manufacturer LG Energy Solution Ltd. (LGES), plans to up cathode materials production by 50 percent this year from last year as it hopes to boost its revenue from the material amid growing demand for electric vehicles.

LG Chem said in a regulatory filing on Tuesday that it posted a consolidated operating profit of 3 trillion won ($2.4 billion) on sales of 51.9 trillion won in 2022. Sales were up 21.8 percent from the previous year but operating profit was down 40.4 percent. Last year, the company raised record annual sales but its operating profit suffered a major blow due to its poor petrochemical business.

Without the sales of its subsidiary LGES, LG Chem posted 30.9 trillion won in sales last year. The company has set its sales target for this year at 32.2 trillion won, 4 percent higher than the previous year.

LG Chem plans to continue to focus on fostering its battery materials business this year. LGES last year raised record annual sales and operating profit. The advanced materials division at LG Chem that supplies battery materials like cathodes to LGES helped lift overall earnings.

In the fourth quarter alone, LG Chem recorded an operating profit of 191.2 billion won on sales of 13.9 trillion won. Sales were up 26.7 percent on year but operating profit down 74.5 percent.

By Jung You-jung, Lee Yoon-jae and Choi Jieun

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