LG Chem plans to separate battery business as electric cars take off

South Korea's LG Chem , an electric car battery supplier for Tesla Inc and GM said on Thursday it plans to separate its battery business into a new company as the electric vehicle market takes off.

LG Chem, South Korea's top petrochemicals maker, has long bet on car batteries as a new growth engine, but it has never made an annual profit in the business since it started making them about a decade ago. LG Chem said the timing was right to separate the business, which competes with China's CATL and Japan's Panasonic, as it has started to make"structural profits" in its car battery business.

The new wholly owned subsidiary, tentatively named"LG Energy Solutions," will include LG Chem's small batteries used in smartphones and laptops and its energy storage systems, as well as its car batteries."Many LG Chem investors will only indirectly hold the battery business, which will be separated into a unit," Daeshin Securities analyst Han Sang-won said.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

GM explores market for electric 'flying cars', say sourcesA Volocopter air taxi performing a demonstration in Singapore last October. — Reuters DETROIT: General Motors Co is exploring options in the aerial taxi market, including whether to build the vehicles known colloquially as 'flying cars,' as part of a push by the US automaker to look for growth in related transportation markets, two people familiar with the matter said. Chief executive Mary Barra on Monday briefly made her first reference ever to Detroit-based GM’s interest in the air taxi market, saying that it fit with development of electric vehicles (EVs) and its Ultium advanced electric battery. “We believe strongly in our EV future and n...
Source: staronline - 🏆 4. / 75 Read more »