LG Chem on Wednesday announced plans to invest 10 trillion won ($8.6 billion) over the next four years in battery materials, eco-friendly plastics and new drug development.

“LG Chem is no longer a petrochemical company. More than 30 projects including mergers and acquisitions, joint ventures and strategic investments are currently under review to reshuffle the business portfolio,” Vice Chairman Shin Hak-cheol said during an online press conference.

Nearly 6 trillion won of the sum will be spent on bolstering its battery materials business, as the firm seeks to maximize synergies with its wholly owned battery subsidiary LG Energy Solution, which is the world’s leading producer of lithium-ion batteries for electric vehicles.

To increase the annual production capacity of cathodes -- one of the four key components of electric vehicle batteries including anodes, separators and electrolytes -- from the current 40,000 metric tons to 260,000 tons by 2026, LG Chem will break ground on a 60,000-ton cathode plant in Gumi, North Gyeongsang Province, in December and consider building additional cathode plants in the US and Europe.

To secure a stable supply of metals that go inside cathodes -- such as nickel, cobalt, manganese and aluminum -- Shin pledged active partnerships with mining, sweltering and refining companies.

“LG Chem is preparing joint ventures with mining companies to bolster its competitiveness in metal sourcing,” Shin said.

The Korean firm is on the lookout for acquisitions or joint venture partners in the field of separators as well, as it wants to swiftly enter the market and set up production bases globally, the vice chairman added.

LG Chem will also triple the production capacity of carbon nanotubes, which currently stands at 1,700 tons. It completed a 1,200-ton carbon nanotube plant in April and plans to begin construction of a third plant within this year. Carbon nanotubes are tiny cylindrical tubes made of carbon atoms. They are additives that help lithium ions travel better inside lithium-ion batteries and therefore enhance batteries’ performance.

As to how the firm will bankroll the plans, Shin expressed confidence it has enough financial room with the split-off of LG Energy Solution. The battery affiliate is set to go public this year, which market analysts say could be the biggest IPO in the history of Korea’s stock market.

On top of the battery material business, LG Chem will allocate 3 trillion won for the eco-friendly material business to accelerate the commercialization of biodegradable and recycled plastics.

“Starting this month, LG Chem will commence the production of its superabsorbent polymer, the world’s first SAP product that obtained the International Sustainability and Carbon Certification Plus certification for bio-balanced products,” Shin said.

SAP, which can absorb water 200 times its weight, is widely used for diapers and hygiene products. LG Chem’s bio-balanced SAP is produced from renewable plant-based raw materials such as waste cooking oil.

ISCC Plus is an international certification system that meets the European Union’s renewable energy directives, the most stringent standards in the world, serving as the major authority in identifying the sustainability of eco-friendly bio products. LG Chem received Korea’s first ISCC Plus certification and has nine products certified, the greatest number among Korean companies.

“LG Chem will begin the construction of a PBAT production facility within this year,” Shin said, referring to a type of a biodegradable plastic that decomposes when it makes contact with air, heat and light.

The firm also aims to increase the revenue of recycled plastics by 40 percent annually.

The remaining 1 trillion won of the 10 trillion won pledged will be directed to develop two innovative new drugs by 2030 for entry into the advanced US and European markets.

Asked on the progress of new drug development, Shin said the most promising candidate is their gout treatment.

“A phase 2 clinical trial in the US showed differentiated results in terms of efficacy and safety compared to existing gout drugs. The gout drug will enter a phase 3 clinical trial next year. The aim is to receive sales approval of the drug in global markets including the US, starting in 2027.”