Vishakhapatnam (Andhra Pradesh) [India], September 19 (ANI): LG Polymers, the Indian manufacturing subsidiary of LG Chem, on Thursday inaugurated the LG India CSR Foundation in Vizag, Andhra Pradesh, marking a significant step forward in its commitment to social responsibility and sustainable community development.

The inauguration ceremony was attended by Deputy Chief of Mission Sang-Woo Lim of the Korean Embassy, Indian Member of Parliament Sribharat, Andhra Pradesh MLA Ganababu, Visakhapatnam Police Commissioner Shankar Bhagchi, Consul General Chang-Nyun Kim of the Korean Consulate in Chennai, and LG Chem's Chief Sustainability Strategy Officer Yunju Ko.

The newly established foundation will spearhead a wide range of community-oriented programs, focusing on improving living conditions, healthcare, and vocational skills in villages surrounding the company's plant.

Initiatives include a recently inaugurated drinking water facility for neighbouring villages, medical services that have already benefitted more than 6,500 residents, and vocational training in fields such as tailoring and beauty care. The foundation office, equipped with classrooms for education and cultural activities, will serve as the hub for these programs.

Speaking at the ceremony, Deputy Chief of Mission Sang-Woo Lim underscored that LG Chem's CSR efforts are closely aligned with Korea's broader vision for its partnership with India. 'LG Chem's CSR efforts are closely aligned with Korea's broader vision for its partnership with India, which places equal importance on advancing industrial cooperation, fostering community-centered development and deepening people-to-people connections,' he said.

He also conveyed his best wishes for the foundation's success in serving as a model for inclusive and sustainable community development.

Alongside its CSR initiatives in India, LG Chem has also been strengthening its global partnerships. The company has secured a shareholder structure to comply with U.S. Inflation Reduction Act (IRA) rules by bringing Japan's Toyota Tsusho in as the second-largest shareholder of its Gumi cathode plant, as per a report by Pulse, the English service of Maeil Business Newspaper Korea.

Quoting the company, the report said on Tuesday that Toyota Tsusho acquired a 25 per cent stake in LG-HY BCM, the cathode joint venture in Gumi. One of Toyota Group's trading arms, Toyota Tsusho, is responsible for much of Toyota Motor's raw material procurement.

'Following the transaction, LG Chem holds 51 per cent of the plant, Toyota Tsusho 25 per cent, and China's Huayou Cobalt 24 per cent. Cathode materials produced at the plant will be supplied to North American battery customers through Toyota Tsusho,' the report noted.

The revised ownership structure allows the plant to avoid IRA restrictions. The law designates any company with 25 per cent or more equity held by Chinese or other restricted foreign entities as a 'foreign entity of concern,' making it ineligible for tax credits. The Gumi plant was previously subject to the rule as Huayou Cobalt held 49 per cent, but the reduced stake now excludes it from the category.

The Gumi plant, with an annual capacity of 66,000 tons, is a core production base. It has adopted a next-generation cathode material technology that skips precursors and directly calcines tailored metals, enhancing product competitiveness.

LG Chem is also expanding its supply chain with projects in Tennessee, United States (scheduled for late 2026), Cheongju and Gumi in Korea, and Wuxi in China, to secure a stable global network.

The report, quoting LG Chem Vice Chairman Shin Hak-cheol, said Toyota Tsusho's participation is 'an important turning point for LG Chem to respond to IRA regulations and strengthen its competitiveness in the global cathode supply market,' adding that the company will further solidify its leadership in the battery materials sector with world-class products and strong partnerships. (ANI)