IoT and Energy: LG Spins off Battery Division in Giant IPO

LG Energy Solution Ltd, one of the world’s largest manufacturers of batteries for electric vehicles, has been undergoing a transformation and realignment for some time. Now the company is completing the IPO of its battery unit LG Energy.IoT and Energy

LG Energy expects to raise up to $10.8 billion in proceeds from the initial public offering of its battery and energy division, LG Energy Solution. The unit is a supplier to General Motors (GM), Hyundai Motor and Tesla, and it would be Seoul’s largest IPO to date.
Meanwhile, global demand for lithium for EV batteries is strong as demand for electrified vehicles picks up strongly with the expansion of charging stations as well as government subsidy incentives and increasing consumer acceptance.
Lithium prices are also rising as demand for the key ingredient in electric car batteries continues to grow. But extracting the rare metal is time-consuming and potentially harmful to the environment.
LG Energy Solution was founded in 2020 and competes with companies including BYD (China), CATL (China), Northvolt (Sweden), Panasonic japan), Tesla (USA) and also Varta (Germany). The South Korean company claims to be a supplier to 13 of the world’s top 20 automotive brands.

Author: Tim Cole
Image Credit: LG Energy