LG Chem plans to move its battery business into a new corporation: LG Energy Solution. The decision was announced at a Sept. 17 board meeting. LG Chem expects to receive approval at a Oct. 30 stockholders meeting with LG Energy Solution officially taking charge of the battery business on Dec. 1, 2020.
This will be a physical division in which LG Chem will possess all of the stocks issued by the new battery corporation and LG Chem will possess 100% of the non-listed shares of the new corporation. LG Chem plans to foster the new corporation to achieve sales of over $26 billion in 2024.
LG Chem officials stated: “We came to the judgment that this is the right time for the corporate spin-off as the battery industry is growing rapidly and structural profits in the EV battery sector are being made in earnest. The corporate spin-off will make it possible to focus on the specialized business areas and enhance management efficiency, thereby upgrading corporate value and stockholder value.”
Through this division, it will be possible to attract large investments, while easing financial burdens by establishing an independent financial structure system for each business sector.
LG Chem plans to foster the new corporation to become the world’s leading energy solutions company for not only battery materials, cells, pack manufacturing and sales, but also to have distinguished competitiveness in the E-platform sector that offers various services throughout the lifetime of batteries such as battery care, lease, charging and reuse.
News item from LG Chem