Shares of LG Chem and SK Innovation, which are EV battery makers, are plummeting. The news that the German Volkswagen Group, a major supplier, will adopt a new type of rechargeable battery, has acted as bad news.
An employee is fixing a VW emblem on a production line for an electric Volkswagen model ID.3 in Germany. Reuters
Volkswagen “Introduced square battery cells by 2023”
As of 10:18 am on the 16th, LG Chem is trading at 906,000 won, down 60,000 won (6.21%) from the previous day. Foreign investors are selling more than 65 billion won. Foreign securities companies, such as Macquarie and UBS, have risen to the top sales channels. SK Innovation is also recording 218,000 won, down 4.6%.
The plunge in the stock prices of these companies was in the aftermath of the’Power Day’ opened by Volkswagen Group the day before. At this meeting, Volkswagen announced that it will introduce a new square-shaped battery cell from 2023. It also announced plans to install it on 80% of all electric vehicles produced by 2030.
Volkswagen is the world’s second-largest electric vehicle vendor, and is supplying pouch-type batteries from LG Energy Solutions and SK Innovation. Chinese CATL and Samsung SDI are supplying prismatic batteries.
Park Yeon-ju, a researcher at Mirae Asset Daewoo, said, “There is a short-term uncertainty expected in LG Chem and SK Innovation, which has been supplying pouch cells.” The situation was planned,” he explained.
Kim Jeong-hwan, a researcher at Korea Investment & Securities, also said, “This is negative news for LG and SK, the major suppliers of Volkswagen’s pouch-type rechargeable batteries,” and said, “From 2025, the market share of Korean rechargeable battery makers in Volkswagen is expected to decline.”
Meanwhile, as of this time, the KOSPI is recording 3064.74, up 19.03 points (0.62%) from the previous day. Individual investors and institutions are net buying about 10 billion won and 80 billion won, respectively, while foreigners are net selling worth 90 billion won. Ahead of the Federal Open Markets Committee (FOMC) meeting, the US 10-year Treasury bond rate will be limited at the beginning of 1.6% per annum, and it is interpreted that it has given the market a sense of relief.
Reporter Hwang Eui-young [email protected]
