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Electric vehicle battery maker LG Energy Solution becomes South Korea’s second most valuable company in IPO – TechCrunch

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South Korean electric vehicle battery maker LG Energy Solution made its successful market debut on Thursday. LG Energy’s market capitalization stood at $98.3 billion (KRW 118 trillion) as of the close of local stock markets, making it the second largest company in the country after Samsung Electronics.

The company’s share price opened at KRW 597,000 ($496), nearly 99% higher than its initial public offering price of KRW 300,000 ($250) each before plummeting to 25% at the start of the session and to end the day up 68.3%.

The world’s second-largest electric vehicle battery maker after China’s CATL raised KRW 12.8 trillion ($10.8 billion), valued the company at $59 billion, last week in the biggest IPO in South Korea Stock Exchange.

LG Energy has about 23% of the global electric vehicle battery market with customers including Tesla, General Motors and Volkswagen, according to an industry analyst. By comparison, China’s CATL held around 35% market share. The analyst also noted that Japan’s Panasonic and China’s BYD account for around 13% and 7% of the shares respectively.

With proceeds from the IPO, LG Energy plans to expand production capacity in global markets as demand for electric vehicle batteries soars. It also wants to form additional strategic partnerships with global automakers in the United States, Europe and China to compete against global competitors.

Spun off from LG Chem in December 2020, LG Energy has more than 30,000 employees and develops lithium-ion batteries for electric vehicles, mobility, drones, ships, computer applications and energy storage systems. Its parent company LG Chem will hold an 81.8% stake in LG Energy after the IPO.

Last June, the Seoul-based company suspended its IPO process following a series of recalls of General Motors’ Chevrolet Bolt electric vehicles due to possible battery cell defects that could increase the risk of ‘fire.

The company announced plans in July to invest $5.2 billion in battery materials by 2025. LG Energy announced earlier this week that it plans to build a 2 .6 billion in the United States with General Motors.


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