World’s top electric vehicle (EV) battery maker LG Chem disclosed talks to create joint ventures (JV) for production of automobile batteries, according to Reuters. Apart from GM and Geely, LG Chem hopes to expand joint ventures to other car makers and sees a bright future with the split-off.
- Separation of LG’s battery business to fund large-scale investments in factory expansion for a wholly-owned subsidiary, LG Energy Solutions, paving the way for company listing of up to 30% in an initial offering
- LG Chem to inject capital into battery production and research to compete with Chinese and other firms
- Company is looking for a new factory site in Europe to more than double car battery capacity to 260 gigawatts (GWh) hours by 2023, up from the current’s 120 GWh.
- LG chem is building new petrochemical production facilities in the U.S. and Southeast Asia to drive growth.
- LG Chem has started supplying batteries to Tesla and hopes to expand the partnership, but the latter is not one of entities the company wants to discuss joint ventures.
- LG Chem stocks lost on its split-off plan and related fire risks on batteries supplied for Hyundai Motor’s Kona and GM’s Bolt.
LG Chem stock is currently gaining. KRX: 051910 is up 0.47%