LG Energy IPO presses restart button to raise more than $10 billion to affect A-share supply chain

According to the Digital Daily10 report on March 8, it is learned from industry insiders that LG Energy (LG Energy Solutions) has decided to promote IPO, this year as planned and the details and date will be announced soon. Yesterday, its parent company, LG Chemical, closed up 3.66 per cent.

LG Energy is a wholly owned subsidiary of LG Chemical, which was created independently by its battery business unit last year. LG Energy, which submitted its IPO application on June 8, had expected to launch on the Korean Stock Exchange in the second half of this year. The company is valued at 100 trillion won (US $90 billion) and intends to raise US $10 billion to US $12 billion, which is expected to set a new record for South Korea's largest IPO.

However, between July and August, GM twice announced a recall of Bolt electric vehicles because of the risk of battery fire. As a battery supplier, the IPO process of LG Energy has been overshadowed for a time. General Motors said on Sept. 20 that LG Energy had repaired battery defects that could cause a fire and restored the supply of Bolt EV and EUV electric vehicle batteries.

In addition, according to the, Digital Daily report, GM has reached a consensus with LG on the cost-sharing of the recall, and the industry estimates the total cost of the recall at about $2 billion. The battery designed for the recall is made by LG Electronics, and LG Energy is responsible for the battery core, and the two companies are currently negotiating how much to bear, which is expected to be seen in the third-quarter results.

LG Energy previously revealed that it aims to achieve $270 billion in sales by 2024 and become the number one company in electric vehicle batteries.

Data show that in the first half of this year, the global installed capacity of power batteries totaled 114.1 GWH, of which LG Energy installed 28GWH, an increase of 169.8% over the same period last year, ranking second with a market share of 24.5%, second only to Ningde era.

Another media reported in July that LG Energy would invest US $10.7 billion in research and development of new generation battery technology and expand production, while LG Chemical would invest US $13.1 billion in R & D of advanced battery materials and expansion of cathode materials.

According to incomplete statistics, Chinese suppliers of LG energy include,

Cathode materials: Dangsheng science and technology, etc.;

Negative materials: Cunninghamia lanceolata, Betteri, Pu Tailai, Xiang Fenghua, etc.

Diaphragm: Enjie shares, Xingyuan material, Sinopec, etc.;

Electrolyte: Jiangsu Cathay Pacific, New Zebang, divine materials, etc.

Equipment: Hangke science and technology, etc.