On December 1, 2020, LG Chem has officially launched its new wholly-owned subsidiary LG Energy Solution, announced in September and approved in October, which consists of the battery business of LG Chem.
LG Chem's battery business is not only quickly expanding, but also profitable (at least in the past two quarters). The revenues are expected to reach 13 trillion KRW ($11.7 billion) in 2020, but that might be just the beginning as the forecast is upwards of 30 billion KRW in 2024.
The LG Energy Solutions unit employs approximately 22,000 people (approximately 7,000 in Korea and 15,000 abroad) globally.
LG Energy Solution President Kim Jong Hyun said:
“LG Energy Solution pioneered with an unwavering challenging spirit for the Korean battery industry, in which the said industry was practically nonexistent, and overcame many concerns and difficulties, and recently became the first to pave the foundation for creating structural profits in the EV battery business before any other competitor.”
“We have now successfully spun off the company to reach for higher dreams and have now set out on a great voyage.”
It's expected that during 2021, LG Chem will try to offer up to 30% of LG Energy Solution shares in an initial offering to benefit from the success and to finance further dynamic growth.