Shares of LG Energy Solution surged 68 in the week
Hardware

Shares of LG Energy Solution surged 68% in the week after the IPO – it became the second-most valuable company in South Korea

Following LG Energy Solution’s IPO last week, the share price rose 68.3% to 505,000 won ($420). As a result, the company’s market capitalization reached 118.2 trillion won ($98.7 billion), surpassed only by Samsung Electronics in South Korea.

Image Source: Mikes Photography / pixabay.com

Image Source: Mikes Photography / pixabay.com

LG Energy raised 12.8 trillion won ($10.7 billion) in its IPO last week, more than double the previous record set by Samsung Life Insurance in 2010. Both institutional and retail investors are interested in the assets of LG Energy, driven by growing demand for electric vehicle batteries. The company’s largest shareholder has not changed – it is still LG Chem and its stake is 81.8%.

According to SNE Research, LG Energy is the world’s second largest EV battery maker, with a market share of 23.8% in the third quarter of last year. Leading the way is the Chinese CATL (31.2%) and Panasonic (13.3%) rounds out the top 3. According to analysts, LG Energy aims to actively expand its business: it plans to increase production capacity at its main plant in Cheongju, Korea, and joint projects with automakers in North America, Europe and China are also being prepared. There is also an investment plan: the company will invest 5.6 trillion won ($4.7 billion) for North American projects, 645 billion won ($538.6 million) for South Korean projects, and 1.4 trillion won ($1 .17 billion US dollars) on European projects 1.2 trillion won (1 billion dollars) for Chinese.

Cooperation with General Motors is being actively promoted: In addition to the plants that the two companies are already building in Ohio and Tennessee, another joint venture is being established in the state of Michigan – LG Energy will spend 2.6 billion dollars on it.

.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

Add Comment

Click here to post a comment