The company's stocks doubled in price from when they first hit the market, even though they settled back down to about 60% higher. They raised 12.8 trillion won- around £7.9 billion or $10.6 billion- during an IPO earlier this month.
LG Energy Solution recently went public and raised $2.5 billion. This is the largest equity fund raising in the Asia region since 2014 when China's Alibaba Group raised 9.9 billion dollars. Sleek and powerful, LG Energy Solutions is a key company in Asia that has grown to have over 1,000 employees and billions in annual revenues.
It's heartening to see the LG Energy Solution getting so much attention this past month. It's clear that there is still a lot of interest for Korean companies and businesses in the electric vehicle field.
What is LG Energy Solution?
LG Corporation is the owner of LG Electronics Company, with more than 20,000 employees total. They are considered one of the world's leading providers for electric vehicle batteries to brands like Tesla.
They are currently producing batteries for some of the world's biggest companies, including Drones and Ships. Earlier this week they announced their plans to build a $2.6 million battery factory with General Motors which will produce high-powered lithium ion cells for NASA's future space flight suits.
“We will have the products, the battery cell capacity and the vehicle assembly capacity to be the EV leader by mid-decade,” Mary Barra, chairman and chief executive officer of General Motors, said
Why are batteries hot property?
Now that we're on the way to zero-emission targets, more and more companies are looking for ways to cut their emissions of greenhouse gases like CO2. They're investing in new technology and getting smarter about reducing their carbon footprint.
Net zero means that the amount of greenhouse gases in the atmosphere doesn’t increase. To do this, you can reduce emissions as much as possible and compensate for any remaining negative effects by removing an equivalent amount. Reaching net zero will involve moving towards renewable energy sources for power, switching to electric or hydrogen cars.
We are expecting the demand for batteries to increase in the future, especially as we transition away from fossil fuels and towards electric vehicles and transportation. This is evident as we see a surge of 71% in electric vehicle sales for last year.
The mining giant, Fortescue Metals Group, has agreed to buy Williams Racing's battery-related arm for $222.2 million USD and this deal is aimed at helping the company reach its target of being the world's low-cost producer of iron ore by 2020.
Last week, a company that produces electric car batteries in the UK received government funding to construct a factory in Cambois. Britishvolt announced plans two years ago to create the so-called gigafactory and has now been approved.