LOTTE Chemical Targets the ESS Market with Vanadium Ion Batteries 

for Easy EV Charging and Renewable Energy Storage 





█ LOTTE Chemical makes equity investments in ‘Standard Energy’, a vanadium ion battery R&D and manufacturing company that fundamentally

    prevents risk of fire in preparation of the EV charging market and ESS (Energy Storage System) market essential for supplying renewable energy 

█ LOTTE Chemical to supply electrolytes, the core material for vanadium ion batteries... Reviewing businesses to expand the strategic synergy between

    the two companies and on business in EV charging and renewable energy utilization using the domestic and foreign hub network of LOTTE Group

    and LOTTE Chemical 

█ Basic Materials President Hwang Jin-koo, “In addition to renewable energy such as solar power and wind power, building an environment for safely

    storing and using the energy is essential for a carbon neutral society”, “LOTTE Chemical will prepare for the age of global technological competition

    by making preemptive investments and constructing cooperative relationships with leading technological companies in preparation for the carbon neutral

    and hydrogen society” 

█ LOTTE Chemical actively pursuing entry into the highly functional and battery materials sector... Plans to construct EV battery electrolysis organic solvent EC,

    DMC production facility and to develop the separator materials business, which is a key battery material, to 100,000 tons and 200 billion KRW by 2025 

LOTTE Chemical (Basic Materials President Hwang Jin-koo) announced that it procured approximately 15% of shares (investing 65 billion KRW) of ‘Standard Energy’, a vanadium ion battery manufacturer, thus becoming its second largest shareholder.

An investment contract signing ceremony was held in November of last year at the Jamsil LOTTE World Tower with the attendance of LOTTE Chemical Basic Materials President Hwang Jin-koo and Standard Energy CEO Kim Boo-gi, in which a strategic partnership was constructed between the two companies, where they discussed the equity investment method and cooperation plans to determine the final investment amount. 

Standard Energy, which was invested in by LOTTE Chemical, is a battery company that was founded in 2013 by researchers from KAIST and MIT, and it became the first research and manufacturing company to develop vanadium ion batteries in the world. 

Unlike lithium ion batteries, vanadium ion batteries use water-based electrolysis, thus fundamentally preventing risk of fires, and high efficiency and high output are possible based on outstanding stability and excellent durability. It is drawing attention as a next-generation battery for energy storage system (ESS), which is expected to grow in various sectors such as for industrial and home uses.

LOTTE Chemical has been researching secondary battery materials for ESS such as vanadium and zinc flow cells since 2011, and began preparations for the vanadium ion battery electrolysis business since 2019.

Through this cooperation, the two companies will not only expand strategy synergy effects, but also plan to review expanding EV charging station UAM (urban air mobility), and renewable energy utilization businesses using the domestic and foreign hub network of LOTTE Group and LOTTE Chemical. 

Basic Materials President Hwang Jin-koo state, “In addition to renewable energy such as solar power and wind power, building an environment for safely storing and using the energy is essential for a carbon neutral society”, while adding, “LOTTE Chemical will prepare for the age of global technological competition by making preemptive investments and constructing cooperative relationships with leading technological companies in preparation for the carbon neutral and hydrogen society”

Standard Energy CEO Kim Boo-gi commented, “Starting with this investment agreement, we hope to concretize the technological, business, and social cooperation contents in the ESS and battery sectors for the two companies, to further solidify our cooperative system.” 

The global ESS battery market is expected to grow to approximately 12 trillion KRW (app. 106 billion USD) by 2026, and it is anticipated that demand for batteries that supplement the weaknesses of existing batteries with features suitable for ESS and the need for ESS that stably accommodates fluctuating power such as solar power and wind power will grow.

Meanwhile, LOTTE Chemical is actively looking to strengthen competitiveness of its petroleum business, while also pursuing entry into the highly functional and battery material sectors. Back in May of 2021, it was decided to construct an EV battery electrolysis organic solvent EC and DMC production facility within the Daesan Plant by investing approximately 210 billion KRW with the goal of completing construction by the second half of 2023, and it also plans to grow the separate material business, which is one of the four major materials of batteries (cathode/anode/separator/electrolysis) to 100,000 tons and 200 billion KRW by 2025.