LG Chem competes with Samsung SDI and Panasonic. LG Chem is also well known for making batteries for gadgets like the iPhone.
LG Chem, the subsidiary of LG Electronics and the primary battery supplier for Tesla. & General Motors intends to approve a plan to spin-off and list its battery division to help it raise funds to meet the rising demand, Yonhap News Agency reported.LG is organising a board meeting on Thursday to discuss the further plan of action, the report said. The Korean petrochemicals giant previously said it was contemplating making its electric automobile battery business a separate entity, without elaborating. LG Chem, which also counts Volkswagen Group as its client, claimed its battery business was hugely profitable in the last quarter, despite the pandemic.
It expects profits to grow, driven by increasing EV imports from European automakers and a rise in sales for cylindrical EV batteries used by Tesla Inc. During the pandemic, LG Chem has become the world’s biggest EV battery supplier and this spinning off could perhaps give it more headroom for growth. LG Chem competes with Samsung SDI and Panasonic. LG Chem is also very well known for making batteries for gadgets like the iPhone.