LG Chem mulls spinoff of EV battery business
2019-12-27 09:50:05 [Print]
LG Chem is mulling a slew of measures to bolster its electric vehicle battery business, including a plan to spin off the battery unit next year.
According to reports, an internal task force at LG Chem is currently operating with a schedule to spin off the battery business division as a subsidiary of the LG affiliate by July.
"The company is considering various measures in order to enhance competitiveness and value of the battery business. Yet, no decision has been made specifically," according to a statement submitted by LG Chem to the financial regulator.
Unlike the company's petrochemicals business, the battery unit has been growing at a remarkable rate, with its sales rising from 3.56 trillion won ($3.06 billion) in 2016 to an estimated 8.54 trillion won this year.
Its operating profit, however, plummeted from 209 billion won last year to a loss of 355 billion won due to slower-than-expected growth of the electric vehicle market and unexpected fire accidents involving the firm's energy storage system.
LG Chem Vice Chairman Shin Hak-cheol said in July that the company aims to increase the proportion of the battery business to 50 percent while reducing the petrochemicals unit to 30 percent in terms of the total sales by 2024.
According to reports, an internal task force at LG Chem is currently operating with a schedule to spin off the battery business division as a subsidiary of the LG affiliate by July.
"The company is considering various measures in order to enhance competitiveness and value of the battery business. Yet, no decision has been made specifically," according to a statement submitted by LG Chem to the financial regulator.
Unlike the company's petrochemicals business, the battery unit has been growing at a remarkable rate, with its sales rising from 3.56 trillion won ($3.06 billion) in 2016 to an estimated 8.54 trillion won this year.
Its operating profit, however, plummeted from 209 billion won last year to a loss of 355 billion won due to slower-than-expected growth of the electric vehicle market and unexpected fire accidents involving the firm's energy storage system.
LG Chem Vice Chairman Shin Hak-cheol said in July that the company aims to increase the proportion of the battery business to 50 percent while reducing the petrochemicals unit to 30 percent in terms of the total sales by 2024.
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