LG Chem, Korea’s largest chemicals company, said Monday that it will invest about 65 billion won ($53 million) to boost production of carbon nanotubes.

The investment is set to be completed at the Yeosu plant in South Jeolla Province by March next year, which would increase annual production of carbon nanotubes to 1,700 tons from the current 500 tons.

The move is meant to tap deeper into the rapidly growing carbon nanotubes market, said LG Chem.

Carbon nanotubes are used as conductive additives in lithium-ion batteries for electric vehicles, as well as semiconductors, car parts and fuselages.

Currently, LG Chem has five EV battery plants in South Korea, China, the United States and Poland, with a combined capacity of 70 gigawatt-hours.

LG Chem supplies the batteries to 13 of the top 20 car brands, including German automaker Volkswagen, French carmaker Renault, American auto giant General Motors and South Korea’s largest carmaker Hyundai Motor. (Yonhap)