LG Chem plans to spin off its battery enterprise to stand-alone firm
LG Chem plans to move its battery business to a new company: LG Energy Solution. The decision was announced at a board meeting on September 17th. LG Chem expects approval at a general meeting on October 30th with LG Energy Solution, which will officially take over the battery business on December 1st, 2020.
This will be a physical section where LG Chem will own all of the shares issued by the new battery company and LG Chem will own 100% of the unlisted shares of the new company. LG Chem plans to promote the new company to generate over $ 26 billion in sales in 2024.
LG Chem officials said, “We have determined that this is the right time to spin off as the battery industry is growing rapidly and structural gains are in earnest in the EV battery space. The outsourcing will make it possible to focus on the specialized business areas and to increase management efficiency, thereby increasing the company value and the shareholder value. “
This division will make it possible to attract large investments while reducing the financial burden by establishing an independent financial structure for each corporate sector.
LG Chem plans to make the new company the global leader in energy solutions, offering not only battery materials, cells, packaging manufacturing and sales, but also outstanding competitiveness in the e-platform sector, which is diverse throughout the life of batteries Offers services such as battery maintenance, leasing, charging and recycling.
Message from LG Chem