Enter 2021.01.27 18:15 | Revision 2021.01.27 18:39
LG Chem said in a conference call held on the 27th after the announcement in the fourth quarter of last year, “This year, sales of the battery business will grow by more than 50% thanks to the launch of new electric vehicle models and expansion of eco-friendly policies in major countries.” LG Chem split the battery business in December last year to establish a 100% subsidiary, LG Energy Solutions.
Seung-se Jang, Managing Director of LG Energy Solutions (Management Strategy), said, “This year’s electric vehicle battery production capacity is expected to increase by 35GWh from 120GWh last year to 155GWh (gigawatt hours). It will be high,” he said. It is known that LG Energy Solutions is supplying cylindrical batteries to Tesla.
In particular, he explained, “LFP has a lower energy density than LG Energy Solutions’ NCM (nickel, cobalt, manganese) batteries, so it is difficult to install it in large electric vehicles with long driving distances.” As a countermeasure to low-cost LFP batteries, he said, “We are trying to lower production costs through innovation in the battery process.”
LG Chem (051910)Plans to continuously expand the production scale of cathode materials, a key material for electric vehicle batteries, starting this year. The company said, “As of the end of last year, the production of cathode materials was 40,000 tons, and through intensive investment, we plan to increase more than four times to 170,000 tons by 2025.” I’m continuing.”
The internalization rate of the cathode material is less than 30%. LG Chem said, “In addition to LG Energy Solutions, we are considering expanding additional customers.”
SK innovation (096770)Regarding the battery lawsuit in progress in the United States and the United States, “In the case of a trade secret infringement case filed with the US International Trade Commission (ITC), it is highly likely that the final judgment will be announced on February 10.” If the ruling is cited, it is meaningful that the fact of “stealing trade secrets” is recognized.”
LG Chem said, “After the final judgment, the amount of damages will be calculated in the Delaware lawsuit, but it will be affected by the ITC ruling.” I admitted.”
Still, he added, “We are doing our best for negotiations without excluding the possibility of agreement before and after the final ruling.”
Meanwhile, LG Chem announced that the consolidated sales of last year increased by 9.9% compared to the previous year to KRW 30.57 trillion through the performance announcement. This is the first time since its inception that LG Chem’s annual sales exceeded 30 trillion won. Operating profit increased by 185.1% year-on-year to KRW 2,353.2 billion.
Looking at the results of the fourth quarter of last year, LG Energy Solutions recorded sales of 4,127.9 billion won, exceeding the sales of the petrochemical division (3,673.6 billion won) for the first time.