LG New Energy, with its backlog of orders, will beat the Ningde era?

On January 10, according to the Korea Herald, South Korean battery manufacturer LG Energy Solution (LGES) said that in the global competition for the electric vehicle battery market, it will soon beat Chinese rival Ningde Times.

LGES CEO Kwon Young-soo said at an online media conference, "We have received more orders, so we will surpass our competitors, and the market value gap between us and the NINGD era will also narrow." I certainly saw the opportunity. ”

According to the data released by SNE Research, a South Korean market research institute, in the first eleven months of 2021, CATL led with nearly one-third of the market share, while the share of LGES was 20.5%, and there was still a big gap.

LGES will hold an initial public offering on January 27, issuing 34 million new shares at a price of between 257,000 and 300,000 won ($2,183,380 to $254.92) per share, and is expected to raise up to 12 trillion won with a market capitalization of about 70 trillion won. For now, the market value of the CATL era is about 236 trillion won.

It is reported that it will use the funds to build more factories overseas, expand investment in research and development, and improve battery standards. Analysts said the IPO could make LGES the third most valuable company in South Korea, behind Samsung Electronics and SK Hynix.

Kwon stressed that the difference between LGES and CATL is "quality battery". LGES's customers include General Motors and Tesla, and it operates factories in the United States, Poland, China and Indonesia. In addition, LGES plans to build two new plants in Ohio and Tennessee by 2025 in a joint venture with GM.

In addition, Kwon is not worried about the supply bottleneck caused by the new crown epidemic, because LGES has locked in key materials. (Proofreading/New)