Yellen tours LG battery facility amid US push for resilient supply chains

US Treasury Secretary Janet Yellen toured an LG Chem battery facility on Tuesday as the United States is seeking to build resilient supply chains with its allies in an effort to address supply disruptions and tackle high inflation.

Yellen visited LG Science Park, a research and development campus of LG Group's eight affiliates, in western Seoul on her first stop of a three-day trip to South Korea. It marked her first trip to Seoul since she took office last year.

Accompanied by LG Chem CEO Shin Hak-cheol, Yellen looked around facilities related to electric vehicle batteries.

The US is drumming up support to build resilient supply chains with its allies and partner nations in response to an assertive China.

Inflationary pressure has sharply built up across the globe, as the protracted war between Russia and Ukraine made oil and commodity prices shoot up and aggravated supply chain disruptions.

After the tour, she plans to make a speech on building resilient supply chains and supporting "friend-shoring," a move to diversify US supply chains with trusted economic partners that could help ease inflationary pressure and resolve supply bottlenecks.

South Korean battery maker LG Energy Solution Ltd., an affiliate of LG Chem Ltd., has been aggressive in investing in building battery factories in the US

LG Energy Solution operates its own factory in Michigan and another in Ohio with General Motors Co. (GM). Construction is under way in Tennessee and Michigan for two other factories, being jointly built with GM.

Later in the day, Yellen plans to pay a courtesy call on President Yoon Suk-yeol. She will also meet with Finance Minister Choo Kyung-ho and Bank of Korea Gov. Rhee Chang-yong.

Asked about whether the US will discuss additional sanctions against North Korea and the issue of opening the currency swap line with South Korea, Yellen did not comment. (Yonhap)