LG Energy Solution

History

2022

Launch of Ultium Cells for $3.2 billion

On August 31, 2022, LG Energy Solution, the main partner of General Motors in the production of traction batteries for electric vehicles, announced the start of production of such batteries at a $3.2 billion plant in Ohio. The joint venture is called Ultium Cells. It is the first of four plants planned to be built in the U.S. in collaboration with GM. Read more here.

Going public

At the end of January 2022, the shares of the battery manufacturer for electric vehicles LG Energy Solution began to trade on the Korean Stock Exchange, their exchange rate on the first day increased by 68.3%, reaching $420. As a result, the company's market capitalization reached $98.7 billion, which allowed it to become the second most valuable company in South Korea. In first place - Samsung $397 billion.

As part of the IPO, LG Energy raised $10.7 billion, a figure more than twice the previous record set in 2010 by Samsung Life Insurance. Both institutional and individual investors have expressed interest in LG Energy's assets, Reuters reported. It is driven by growing demand for electric vehicle batteries. LG Chem remains the largest shareholder in LG Energy Solution, its share is 81.8%.

LG Energy Solution went public and became the second most valuable company in Korea

LG Energy will direct funds from the IPO to develop and automate production and improve battery quality for electric vehicles. The company also plans to outperform the market leader, China-based Contemporary Amperex Technology.

In particular, LG Energy is focused on actively expanding its business: increasing production capacity at the main facility in Korean Cheongju, as well as developing joint projects with automakers in North America, Europe and China. The company also has an investment plan: LG Energy is ready to spend $4.7 billion on North American projects, $538.6 million on South Korean projects, $1.17 billion on European projects, and $1 billion on Chinese projects.

In addition, LG Energy continues to partner with General Motors. Companies are already building plants in Tennessee and Ohio and plan to create another enterprise in Michigan - LG Energy will spend $2.6 billion on this project.

Analysts expect more companies, including SOCAR and Kurly, to go public in 2022 in South Korea.^[1]

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