Lotte Chemical will inject more than 602 billion won ($502.3 million) to produce raw materials for electric vehicle batteries and build new facilities for carbon capture and liquefaction on a 67,000-square-meter site inside a petrochemical complex in Daesan, South Chungcheong Province.

The chemical unit of Lotte Group will use the fund to manufacture high-purity ethylene carbonate and dimethyl carbonate. The two are raw materials of electrolytes, one of the four key components of EV batteries. They account for 30 percent of electrolytes in terms of cost, according to the company.

“As Korea imports EC and DMC 100 percent, Lotte’s investment will support the localization of the raw materials,” a company official said.

Also, Lotte Chemical will set up a facility to capture and liquidate 200,000 metric tons of carbon per year and commence a commercial operation within the second half of 2023. The captured carbon will be utilized as raw materials for EC and DMC.

The funds will also be used to expand the annual production capacity of ethylene oxide adduct and high-purity ethylene oxide.