2nd place with a global market share of 21%…JV with Hyundai Motors and GM
車Battery market, 330GWh last year → 1438GWh in 2025
Production capacity, 155GWh last year → More than 400GWh in 2025
[서울=뉴스핌] Reporter Lee Yoon-ae = As LG Energy Solution recorded an all-time success in its initial public offering (IPO), interest from inside and outside the industry is growing.
LG Energy Solutions is a leading battery maker with global automakers such as Hyundai Motor, GM, Tesla, Volkswagen and Audi as customers.
As the electric vehicle market is in full bloom, the electric vehicle battery market is also expected to grow more than tenfold within 10 years, and there is talk that investment in the next few years will determine future competitiveness.
| [서울=뉴스핌] Reporter Yoon-ae Lee = LG Energy Solution and GM EV battery joint venture [사진=LG에너지솔루션] 2021.03.19 yunyun@newspim.com |
According to the battery industry and financial investment industry on the 20th, LG Energy Solution’s subscription margin exceeded 100 trillion won, setting the highest record in IPO history. In the previous institutional investor demand forecasting, for the first time in history, the amount of orders in the “light” unit (1,5203 trillion won) was collected.
The final offering price is 300,000 won, and the market cap after listing is expected to exceed 100 trillion won. In this case, it will rise to the second largest company in the KOSPI by market cap after Samsung Electronics. SK Hynix, currently the second-largest company, has a market cap of 93 trillion won.
In the battery industry, it is interpreted that this reflects expectations for the growth of the electric vehicle battery market and the evaluation of the future value of LG Energy Solutions, which competes with CATL for the first place.
According to market research company SNE Research, global electric vehicle battery demand is expected to grow more than tenfold from 330 GWh (gigawatt hour) in 2021 to 1438 GWh in 2025 and 4028 GW in 2030.
In order to respond to this, the battery industry is focusing on expanding production capacity and developing technologies. LG Energy Solutions also plans to use the funds secured through this IPO to invest in expanding the capacity of domestic and overseas production bases in Korea, North America, Europe, and China, for next-generation battery R&D, and to strengthen quality and safety.
Specifically, it announced plans to invest in North America, Europe, and China, including the Ochang Plant, which is a domestic production base. It announced an investment plan of 5.6 trillion won by 2024 in North America’s Holland plant and GM’s joint venture Ultium Cells. In Korea, the company plans to invest 645 billion won in the Ochang plant in Cheongju, North Chungcheong Province by next year to build a cylindrical battery production facility for electric vehicles.
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When the investment is completed, LG Energy Solution’s production capacity is expected to increase from about 155GWh last year to over 400GWh in 2025. This is enough to make about 8 million electric vehicles equipped with 50 kWh batteries.
The biggest concern is whether it can win the competition against CATL.
As a result of SNE Research’s survey on the market share by battery manufacturers for electric vehicles in 80 countries from January to November last year, LG Energy Solutions ranked second with 20.5%. The gap with the No. 1 CATL (31.8%) was also at the level of 10 percentage points (P).
LG Energy Solution surpassed CATL (19.0%) with 25.7% in 2020 (January to November) to rank first in the world, but the gap with CATL, which received full support from the Chinese government, widened.
LG Energy Solutions is confident that it can lead the competition with CATL.
At an online press conference held on the 10th, LG Energy Solutions Vice Chairman Kwon Young-soo said, “I know that LG Energy Solution’s order backlog is larger than that of CATL in China. said
“LG Energy Solutions overwhelms its competitors in terms of intellectual property rights (IP), and as a result, unlike CATL, it has a diverse global customer group,” he said. .
yunyun@newspim.com
