Provision of a long-term loan of up to EUR 250 million to LG Chem Wroclaw Energy sp.z o.o (the "Company"), a fully owned subsidiary of LG Chem, Ltd, for the construction of a Lithium-Ion battery factory for Electric Vehicles in Wroclaw, Poland (the "project").
The project supports LG Chem's investment plan to construct a Lithium-Ion battery factory in Wroclaw, Poland, in order to produce and supply EV batteries to the Original Equipment Manufacturers (OEMs).
ETI score: 80
The transition impact of the proposed project will be derived from Green quality. The Project is expected to result in major CO2 emission savings from energy efficiency gains of Green product (Electric Vehicles batteries) replacing conventional Internal Combustion Engines.
LG CHEM WROCLAW ENERGY SP ZOO
LG Chem Wroclaw Energy sp.z o.o is owned by LG Chem, Ltd of South Korea, one of the global leading petrochemical companies.
EBRD Finance Summary
Total Project Cost
Environmental and Social Summary
Categorised B (2014 ESP). The Environmental and Social Due Diligence (ESDD) concluded that the environmental and social (E&S) impacts associated with the Project are site specific, and readily identified and addressed through established mitigation measures. The Company operates a world class manufacturing facility in an existing industrial zone at the outskirts of the city of Wroclaw (Poland) and is compliant with the Bank's Performance Requirements (PR) through implementation of corporate management systems and adherence to EU and Polish environmental and labour laws. An in-house ESDD was undertaken to review current operations and this included a site visit to the company's manufacturing and assembly site in Wroclaw, interviews with EHS and HR management teams. An additional review of the permit and other local regulatory requirements including the EIA for both existing plants as well as the expansion projects was also undertaken.
The ESDD concluded that the Company has a well-developed EHS and HR systems, and the capacity to fully implement the Bank's PRs. Environmental and occupational health and safety issues are managed through an integrated management system (IMS) certified to ISO 14001 and OHSAS 18001 standards at all operations. The necessary resources and capacities are in place to implement the IMS.
In terms of environmental performance, the Company operates in line with the requirements of Polish Regulatory Framework, which is complaint with EU Environmental Directives. The Company has undertaken EIAs for the various stages of investment and obtained relevant permits from Competent Authorities. The site itself is located within a large industrial zone, and a number of companies located in the near vicinity share the same infrastructure, such as a storm-water system and access roads.
The Company is implementing EU waste directives and is also developing a circular economy strategy to ensure ongoing compliance. In the longer term the company will develop a waste recovery system to help with the replacement of old batteries. LG Chem in Wroclaw employs a total staff of approximately 3,000 people. The Company has implemented a corporate HR polices which include systematic HR audits to address potential labour issues.
Technical Cooperation and Grant Financing
Company Contact Information
Ryan YS Yang
PSD last updated
27 Jan 2020
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