With the increase in demand for new energy vehicles, the power battery industry has become one of the fastest growing industries in recent years, giving birth to many industry giants. At present, the world's major power battery manufacturers include Panasonic, LG, BYD, CATL and so on. The data given by market research institutions shows that in the past 11 months, the installed capacity of batteries in the Ningde era still ranks first in the world.
Recently, some media reported that LG New Energy, the world's second largest electric vehicle battery manufacturer, is preparing to carry out one of the largest IPOs in South Korean history, planning to raise 11 billion US dollars to compete with catheart for the "leading" position. At that time, LG New Energy is expected to become the third largest technology company in South Korea, second only to Samsung Electronics and SK Hynix, and the company's valuation will reach 70.2 trillion won, equivalent to about 375.5 billion yuan.
Public information shows that LG New Energy (LGES), is a subsidiary of the South Korean LG Group, officially established in just over 1 year, is one of the leading enterprises in the field of global battery technology, the company's main business includes power batteries, small batteries and energy storage systems in three major areas, currently has more than 20,000 employees worldwide, for Volkswagen, General Motors, Daimler, Hyundai, Audi, Porsche, Tesla and other global leading car brands to provide power battery products. In fact, as early as the mid-1990s, LG Group has begun to develop a lithium-ion battery business, formerly known as LG Chem's Battery Division.
LG Chem was the first to make cosmetic products, and in order to develop cosmetic bottle caps that are not easy to break, it became the first Korean company to introduce injection molding machines and use machines to produce daily necessities such as combs, toothbrushes and tableware. After tasting the sweetness of diversified development, LG Chem expanded into the field of electronics, established "Venus Industrial Co., Ltd.", which is now LG Electronics, to create household appliances such as refrigerators, air conditioners, vacuum cleaners and washing machines.
With the continuous expansion of the LG Group and the needs of the business, the Battery Division was established in the 1990s. After years of trial and error, the division has a large number of technical reserves, and in the past few years, it has been independently formed into today's LGES. It is understood that LG New Energy is accelerating the construction of a global management system, with production bases and operation technology research and development centers in China, Japan, South Korea, Southeast Asia, Europe and the United States. Successfully obtained orders from well-known automakers including Tesla, Audi, Volkswagen, General Motors, Kia and so on. Thanks to the continuous improvement of the battery market, the status of LG's new energy industry is in a rapid rise. According to the financial report of parent company LG Chemical, the operating income of the company's battery business in the third quarter of 2021 was 3.14 trillion won, an increase of 42.3% year-on-year, which is the fastest growing business among the company's five major businesses.
The popularity of new energy vehicles has prompted the power battery to become a key part of the competition, and the competition in the first echelon of the industry is more fierce at this stage, and the main manufacturers come from China, Japan and South Korea. Some time ago, the senior management of LG New Energy confidently said: "It is expected that our global market share will surpass the Ningde era!" However, industry insiders believe that it is not easy to catch up with the reality, LG new energy is attacking at the same time, CATL is also intensively increasing R & D investment and layout, in order to maintain its position as the leader in the global battery market.