LG Energy Solution applies for preliminary IPO approval -Korea Exchange
South Korea’s battery maker LG Energy Solution Ltd has applied for preliminary approval for an initial public offering, Korea Exchange said on Tuesday.
The South Korean electric vehicle (EV) battery maker, wholly owned by LG Chem Ltd 051910.KS, was separated from LG Chem last year.
LG Energy Solution is one of the world’s top EV battery makers, supplying Tesla Inc TSLA.O and General Motors Co GM.N.
LG Energy Solution said a statement that the company plans to complete the listing within this year.
LG Energy Solution’s IPO plan comes as global sales of battery-powered electric cars are expected to have reached nearly 2.5 million in 2020 and are set to rise by 70% in 2021, according to IHS Markit.
The South Korean battery maker said it plans to use the proceeds raised by the IPO to secure business competitiveness and expand facility investment funds in response to the growing market demand for EVs.
In March, LG announced plans to invest more than $4.5 billion in its U.S. battery production business by 2025.