LG Electronics (LG) had entered into an exclusive agreement with REC Wafer of Norway to purchase multicrystalline silicon wafers.

The five-year contract is said to have an estimated investment of more than US$340 million. LG will begin to receive wafers with limited volumes in 2010 and the delivery amount will increase over the contract period until 2014.

Taking the initiative in alternative energy development, LG Electronics and its sister companies within LG Group have secured an integrated value chain for solar power production, including production of key components such as solar cells and modules.

According to LG Electronics, solar energy is a new growth engine for the company. In addition in making significant investments in solar energy R&D, the company has established a solar cell business team under its chief technology officer (CTO), Dr. Woo Paik.

In October 2008, LG announced plan to convert its A1 plasma panel manufacturing line in Gumi, Korea, for solar cell production. The company plans to invest 220 billion won to establish two solar production lines with mass production to begin in Q1 2010. Each line will have an annual capacity of 120MW.