The boots have landed on the ground.
Author | The Eaters from the Planet Magnesia
According to the Korea Economic Daily, LG Energy Solution, a subsidiary of LG Chem's battery business, plans to make an initial public offering (IPO) at the end of January 2021 and officially list on the Korean exchange.
It is reported that LG New Energy seeks to raise up to 20 trillion won through this IPO, and this IPO will not only break the 4.9 trillion won ($4.12 billion) South Korean IPO record set by Samsung Life Insurance in 2010, but also profoundly affect the global new energy vehicle market pattern.
As of press time, LG said on the IPO: "After the relevant matters are determined, the company will officially issue an announcement." ”
According to public information, on December 1, 2020, LG Chem officially announced that LG New Energy was officially established, and Jin Zhong, former president of LG Chemical Battery Business Headquarters, is now the CEO of the company.
It is understood that LG New Energy is building a global management system, with a total of 22,000 employees worldwide, with production bases in Wucang, South Korea, Michigan in the United States, Nanjing in China, Wroclaw in Poland, and operation technology research and development centers in Daejeon, South Korea, Troy in the United States, Nanjing in China, and Frankfurt in Germany. LGES is a wholly-owned battery subsidiary of LG Chem, and its customers include Tesla, General Motors and Hyundai Motor.
According to the Korea Herald, LG New Energy CEO Kwon Young-soo said at an online media conference that LGES's share will surpass that of CATL because of its wider customer base, while CATL only operates factories in China. "We receive more orders, so we will surpass our competitors, and the market value gap between us and the NINGD era will also narrow." Of course, I see the opportunity", and the "competitor" mentioned here also refers to the Ningde era.
LG New Energy expects sales of 13 trillion won in 2020 and plans to achieve sales of more than 30 trillion won in 2024, becoming the world's leading energy solution provider.
To this end, LG New Energy will expand investment in a timely manner, strengthen business competitiveness, and lead the market with innovative high-performance products and leading engineering technologies such as smart factories. LG New Energy plans to increase its annual battery production by 30% from 120GWh in 2020 to 156GWh by the end of 2021, and it is expected that production capacity will be further increased to 260GWh by 2023.
The popularity of LG new energy by investors is closely related to the strong demand for electric vehicles in major global markets. According to Deloitte, by 2030, it is expected to grow more than 12 times to 31.1 million vehicles, and electric vehicles will account for nearly one-third of new car sales.
With the advent of green energy on the stage, the demand for pure electric vehicles, plug-in hybrid vehicles and hybrid vehicles has increased, and batteries are becoming one of the cores of the rapidly developing electric vehicle industry in recent years.
On December 29, data released by SNE Research, a South Korean market research institute, showed that in the first 11 months of last year, the NINGDE era (300750. SZ) has a share of the global power battery market, as high as 31.8%, and has been the world's first for four consecutive years by 2020. CATL led the Second Rank LG New Energy by 11.3 percentage points, with the latter having a market share of 20.5%. Panasonic's market share ranked third with 12.5%, and BYD (002594. SZ) ranked fourth with a market share of 9.0%.