In a recent press release, LG Chem disclosed that Toyota Tsusho, a Japanese entity, has procured a 25% equity share in its Gumi Cathode Material Plant (LG - HY BCM), thereby emerging as the second - largest stakeholder in the facility. As a general trading firm under the Toyota Group umbrella, Toyota Tsusho's main function is to source raw materials for Toyota Motor.

Following this acquisition, the ownership structure of LG Chem's Gumi Cathode Material Plant undergoes a transformation. LG Chem retains a 51% stake, while Toyota Tsusho now holds a 25% share. Meanwhile, Toyota Cobalt's stake has been reduced from 49% to 24%.

This strategic move allows Toyota Tsusho to adhere to the newly instituted PFE standards and remain in compliance with the IRA regulations. As a result, Toyota Tsusho has laid out plans to supply the cathode materials manufactured at this plant to its battery customers in North America.