The opening rose 99%, LG new energy "bite" the Ningde era?

LG New Energy wants to use the power of capital to "bite" the Ningde era and sit on the top spot of global power batteries. On January 27, LG New Energy was listed on the Korea Stock Exchange, and its stock price climbed by 99% after the opening. In fact, the heat of the new energy vehicle market makes the capital level pay more and more attention to the power battery market, when the Ningde era is firmly sitting on the trillion market value, the battery manufacturers began to squeeze into the IPO track for better development. As a shout to surpass the LG new energy of the Ningde era, it will further open up financing channels and expand the production capacity layout market after successful listing.

However, industry insiders said that LG New Energy wants to sit in the position of the boss of the power battery industry, how to break through the Chinese market is the key, but from the current expansion rate of the Ningde era, there is no room for LG New Energy, compared to the continuous expansion of production capacity, after the listing of LG New Energy should think more about how to kill back to the Chinese market.

LG New Energy was officially listed

On the first day of listing, LG New Energy's issue price was 300,000 won (about 1,600 yuan) per share, and after the opening of the market, LG New Energy's stock price rose by 99% to 598,000 won, and then LG New Energy's stock price fell back to 468,000 won, up 56% from the issue price, and the market value reached 112.8 trillion won (about 593.6 billion yuan).

Previously, LG New Energy announced that it will raise about 68.3 billion yuan through an initial public offering (IPO), becoming the largest IPO project in South Korea's history. On the first day of listing, it was reported that South Korean retail investors subscribed to more than 70 times the subscription scale, and the LG new energy IPO drove the number of new accounts opened in South Korea, and the new account data of some Korean securities companies increased by more than 200% compared with previous years.

According to public information, LG New Energy belongs to South Korea's LG Group, which was once a business segment in LG Chem, covering three major areas: power batteries, small batteries, and energy storage systems. After the global power battery market gradually became hot, LG new energy was split from LG Chem.

As an early power battery company, LG New Energy has cooperative relations with many automobile groups, and is considered by the industry to be the biggest potential rival in the Ningde era. According to SNE Research data, in the first 11 months of last year, LG New Energy's global power battery installed capacity was 51.5GWh, an increase of 90% year-on-year, with a market share of 20.5%, ranking second, while Ningde ranked first with an installed capacity of 79.8GWh and a market share of 31.8%. Before the listing, LG New Energy CEO Quan Yingshou said bluntly: "We expect that our global market share will surpass that of catheter and become the world's first." ”

In order to grab market share faster, LG New Energy is constantly exploring the market. It is reported that LG New Energy plans to invest 8.85 trillion won in its battery factories in South Korea, Poland, the United States and China by 2025, increasing production capacity by nearly 2 times to 400GWh. LG new energy related people said that in addition to the plan to develop new products and build smart factories to improve product quality and quality, the fundraising will also be used to expand production.

Yan Jinghui, a member of the expert committee of the Automobile Dealers Association, said that the global sales of new energy vehicles are rising, and the demand for power batteries is increasing. Based on this, domestic and foreign battery manufacturers have continued to expand production, trying to seize the opportunity in the market share battle. Expansion needs more financial support, LG New Energy chose to list at this time in order to broaden financing channels and prepare to challenge the Ningde era.

The Chinese market is key

Continuous expansion of production capacity and layout, aiming at the Ningde era, but the real opportunity for LG New Energy may be in China.

At present, LG's new energy customers include Tesla, Renault, Hyundai, Volkswagen, General Motors, Volvo, Kia and so on. It is reported that the day before the listing, LG New Energy and General Motors reached a cooperation agreement, and the two sides jointly invested $2.1 billion to set up a new power battery factory. It is not difficult to find that European and American enterprises are the "core circle" of LG New Energy, and overseas markets are the main battlefield of LG New Energy.

In recent years, the global new energy vehicle market has entered a period of rapid growth. Last year, sales of new energy vehicles in the United States were 656,000 units, an increase of nearly 100% year-on-year; sales of new energy vehicles in the European market were about 1.95 million units, up 65% year-on-year. However, the fastest growing city in the world is still the Chinese market, with the cumulative sales of new energy vehicles in mainland China last year reaching 3.521 million units, an increase of 1.6 times year-on-year.

Compared with LG New Energy, the circle of friends of the Ningde era is more in the Chinese market, not only the factory is more in the domestic layout, the battery equipped with domestic independent brands, including the joint venture company developed in China, is also used for Ningde era products.

Industry insiders said that compared with overseas markets, the demand for power batteries in the Chinese market is greater, which is also the biggest advantage of the Ningde era to occupy the top spot in the global power market. Although LG New Energy has cooperated with many large groups, the current sales volume of multinational enterprises in the New Energy Vehicle Market in China lags behind that of Chinese local enterprises, which also compresses the popularity in China.

In addition, in order to reduce costs, the new energy vehicle market began to return to the era of lithium iron phosphate, but LG New Energy has been deeply cultivating ternary lithium batteries before, although it later developed lithium iron phosphate, but let the Ningde era occupy the opportunity. At present, domestic car companies and NINGDE times have a good cooperative relationship, while maintaining the domestic market, NINGDE times is also exploring overseas markets and building factories overseas. Recently, the Ningde era has begun to lay out the power exchange market and provide solutions for more car companies, which has also become a bargaining chip for the CATL era to negotiate with many car companies.

In the face of competitors attacking, LG New Energy has also begun to find a breakthrough path. It is reported that LG New Energy's new generation of high-nickel quaternary batteries has been localized in Nanjing, and LG New Energy's business in China will also enter a new stage of development. The cathode material of LG new energy's new generation of four-membered batteries is nickel-cobalt-spesartesartine, of which the proportion of nickel increases to 90%, which not only improves the energy density, but also increases the battery capacity, and the proportion of cobalt is reduced to 5%, which can reduce the cost of the battery. This may become a breakthrough for LG New Energy in China.

Beijing Business Daily reporter Liu Xiaomeng