+
 LG Energy Solution plans to increase sales by 8% in 2022
POWER & RENEWABLE ENERGY

LG Energy Solution plans to increase sales by 8% in 2022

LG Energy Solution Ltd (LGES) announced on Tuesday that it plans to increase sales by about 8% in 2022, predicting an increase in demand for electric vehicle (EV) batteries as the global chip shortage eases later this year.

Even as the chip shortage affecting automakers led to weaker than expected demand for batteries, the newly listed South Korean firm, which accounts for a fifth of the global EV battery market, turned a profit in the October-December quarter.

LGES, which became South Korea's second-largest publicly traded company last month in the country's largest-ever initial public offering (IPO), reported a fourth-quarter operating profit of 76 billion won ($63.5 million) in its first earnings report. This compares to a profit estimate of 150 billion won from two analysts polled by Refinitiv and a loss of 479 billion won in the same period a year ago.

The global chip shortage has impacted automaker demand, according to analysts, with LGES rivals SK On and Samsung SDI Co Ltd reporting a similar impact on battery demand in the fourth quarter. LGES' revenue increased 2% year on year to 4.4 trillion won, with the company supplying Tesla Inc and General Motors Co, among others.The company said it will spend 6.3 trillion won on capital expenditures this year, up 58% from the previous year, to expand capacity at its global manufacturing facilities to meet the demand for batteries.

LGES had a stellar market debut in late January, surging to a market capitalization of around $98 billion, second only to Samsung Electronics Co Ltd on the local bourse, reflecting the EV battery industry's bright prospects. The company's stock has risen 8.5% since then, with another 2.2% added on Tuesday, outperforming the broader market KOSPI by 0.8%.

LGES planned to build a battery joint venture (JV) with Honda in the United States, according to a South Korean local newspaper in January.

LGES announced in late January that it plans to invest $2.6 billion in a third joint battery plant in the United States with GM, with the goal of securing an annual capacity of about 50-gigawatt hours (GWh) of batteries by 2025, enough to power about 700,000 electric vehicles. In Ohio and Tennessee, the two companies are already constructing two joint battery plants.

According to consulting firm Deloitte, global EV sales are expected to grow more than 12-fold to 31.1 million vehicles by 2030, accounting for nearly a third of all new vehicle sales.

Image Source

Also read: NREDCAP and RACEnergy launch first EV battery station in Tirupati

LG Energy Solution Ltd (LGES) announced on Tuesday that it plans to increase sales by about 8% in 2022, predicting an increase in demand for electric vehicle (EV) batteries as the global chip shortage eases later this year. Even as the chip shortage affecting automakers led to weaker than expected demand for batteries, the newly listed South Korean firm, which accounts for a fifth of the global EV battery market, turned a profit in the October-December quarter. LGES, which became South Korea's second-largest publicly traded company last month in the country's largest-ever initial public offering (IPO), reported a fourth-quarter operating profit of 76 billion won ($63.5 million) in its first earnings report. This compares to a profit estimate of 150 billion won from two analysts polled by Refinitiv and a loss of 479 billion won in the same period a year ago. The global chip shortage has impacted automaker demand, according to analysts, with LGES rivals SK On and Samsung SDI Co Ltd reporting a similar impact on battery demand in the fourth quarter. LGES' revenue increased 2% year on year to 4.4 trillion won, with the company supplying Tesla Inc and General Motors Co, among others.The company said it will spend 6.3 trillion won on capital expenditures this year, up 58% from the previous year, to expand capacity at its global manufacturing facilities to meet the demand for batteries. LGES had a stellar market debut in late January, surging to a market capitalization of around $98 billion, second only to Samsung Electronics Co Ltd on the local bourse, reflecting the EV battery industry's bright prospects. The company's stock has risen 8.5% since then, with another 2.2% added on Tuesday, outperforming the broader market KOSPI by 0.8%. LGES planned to build a battery joint venture (JV) with Honda in the United States, according to a South Korean local newspaper in January. LGES announced in late January that it plans to invest $2.6 billion in a third joint battery plant in the United States with GM, with the goal of securing an annual capacity of about 50-gigawatt hours (GWh) of batteries by 2025, enough to power about 700,000 electric vehicles. In Ohio and Tennessee, the two companies are already constructing two joint battery plants. According to consulting firm Deloitte, global EV sales are expected to grow more than 12-fold to 31.1 million vehicles by 2030, accounting for nearly a third of all new vehicle sales. Image Source Also read: NREDCAP and RACEnergy launch first EV battery station in Tirupati

Next Story
Infrastructure Urban

ITCONS Gains on New Rs 3.5 Million Defence Contract

ITCONS E-Solutions is trading at Rs 549.00, up by Rs 12.10 or 2.25 per cent from its previous close of Rs 536.90 on the BSE. The scrip opened at Rs 549.00 and has touched an intraday high and low of Rs 549.00, with 200 shares traded so far.A BSE ‘MT’ group stock with a face value of Rs 10, ITCONS touched its 52-week high of Rs 767.00 on 25 September 2024 and a 52-week low of Rs 166.70 on 5 August 2024. Over the past week, the stock has fluctuated between Rs 560.00 and Rs 510.60. The company's current market capitalisation stands at Rs 3.3 billion.Promoters hold 58.22 per cent of the compan..

Next Story
Infrastructure Urban

Delhi Extends EV Policy Till March 2026

The Delhi government has extended its existing Electric Vehicle (EV) Policy until 31 March 2026, or until a revised version is approved. The decision was made during a Cabinet meeting chaired by Chief Minister Rekha Gupta on Tuesday.According to Transport Minister Pankaj Kumar Singh, the draft of the new policy will undergo broader public consultation before being finalised, prompting the extension to allow time for thorough stakeholder engagement.The consultation process will include inputs from citizens, environmental groups, academic institutions, industry experts, and private firms. Key fo..

Next Story
Infrastructure Urban

Ather Crosses 400 Fast Chargers in Maharashtra

Electric two-wheeler manufacturer Ather Energy announced on Thursday that it has surpassed 400 fast charging points under its Ather Grid network across Maharashtra.The company's fast charging infrastructure now spans 35 cities in the state, including key urban centres such as Mumbai, Nashik, Pune, and Nagpur."Crossing 400 fast chargers in the state is about giving riders the assurance that they'll always find a charger when they need one. As we expand our retail presence, the charging network will continue to grow in tandem to make EV ownership truly seamless," said Ravneet Singh Phokela, Chie..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?