South Korea’s LG plans to invest $5.2bn to start producing the chemicals and materials used in electric vehicle batteries, as the global industry leader urgently tries to cut its dependence on China. 

The four-year investment by the world’s biggest EV battery maker comes as plans by countries and carmakers to pivot away from fossil fuel-powered vehicles are complicated by the industry’s heavy reliance on refineries and factories in China. The country is by far the planet’s largest processor of most of the minerals needed for battery production.

LG Chem, the parent of the conglomerate’s battery group LG Energy Solution, said on Wednesday it would diversify its production of important materials including those used in cathodes, anodes and separators.