LG Chem’s battery business’s existing orders exceed 128 billion U.S. dollars, and annual facility investment exceeds 2.5 billion U.S.
According to news on September 17th, LG Chem revealed today that the current order volume of the battery business has exceeded 150 trillion won (approximately US$128 billion), and the annual facility investment is more than 3 trillion won (approximately US$2.5 billion) .
LG Chem said today that it will split its battery business. After the extraordinary general meeting of shareholders held on October 30 and approval is obtained, LG Chem will formally divide the battery business from December 1 and establish a new company. The new company name is temporarily Designated as “LG ENERGY SLOLUTIONS” (LG energy solutions).
The split will be through the way of survival, LG Chem holds 100% of the shares of the new company.
LG Chem plans to develop this new company into an energy solution provider centered on the battery business, and sales in 2024 will exceed 30 trillion won. The expected sales of the new company this year are approximately 13 trillion won.
LG Chem’s battery business has large annual capital expenditures and therefore requires a lot of capital. This separation will help large-scale financing in the future and lay a financial foundation for subsequent development. By establishing an independent financial structure for each business department, the financial burden can also be reduced.
Regarding the public offering of the new company, LG Chem stated that “there is no specific plan and will continue to conduct discussions”, and said that “the cash generated from business activities is used for the investment funds required as the demand for electric vehicles increases. LG Chem owns 100 % Shares, so if necessary, funds can be raised in various ways.”
LG Chem’s battery business provides diversified services covering the full life cycle of batteries, including battery materials, battery cells, battery pack production and sales, as well as battery repair, leasing, charging, recycling and reuse.