LG New Energy launched the listing of lithium giant competition which A-share suppliers are expected to benefit?

South Korean battery maker LG Energy Solutions company (LG Energy Solution Ltd.,) has submitted an application to the Korean Stock Exchange to formally launch the listing process to seek an initial public offering ((IPO)) this year, according to South Korean media reports. The company may be 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.

2024 refers to the world's first industrial chain to benefit from many aspects.

Data show that LG new energy is split from LG Chemical (LG Chem Ltd.) and was formally established in December last year. It is mainly used for electric vehicles, consumer electronics batteries and energy storage device (ESS) production. Now it has become one of the global EV battery giants and a supplier to Tesla.

Due to the rapid rise in demand in the downstream market, LG New Energy had a revenue of $11 billion last year, an increase of 48%, an operating profit of $600 million, a turnround of losses and an 85% increase in sales of $3.82 billion and an operating profit of $310 million. According to statistics from research institute SNE Research, as of the end of April this year, LG new energy accounted for 21.5% of the global electric vehicle market, second only to the first Ningde era (32.5%).

However, LG New Energy is not satisfied with its current achievements.

At the end of April, LG New Energy disclosed in detail the progress of next-generation battery development and commercialization plans for the first time, saying that it aims to achieve $270 billion in sales by 2024 and become the number one company in the field of electric vehicle batteries. In addition, the company plans to commercialize lithium-sulfur batteries by the end of 2025 and all-solid-state batteries between 2025 and 2027.

Founder Securities Shen Jianguo team said that it is optimistic about the future development of LG new energy, pointing out that its downstream customers' demand for new models is high, and the superimposed Chinese factory production line will release production capacity this year. The company is expected to ship more than 90 GWH this year, and its annual revenue is expected to exceed the company's guidance.

LG new energy suppliers in China include,

Cathode materials: Palmer technology, Dangsheng 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.

Structural member: Kodali.