LG Chem, one of the world’s largest battery manufacturers, intends to separate this business. Restructuring may take place by July 2020, the Yonhap agency reports.
According to Media, created by LG Chem working group is being determined with a schedule for separating the battery business into a new subsidiary. LG Chem itself declare the following:
“The company is considering various measures to increase competitiveness and revenue in the battery business. However, no concrete decision has yet been made.”
LG Chem Vice Chairman Shin Hak-cheol in July 2019, announced that the company intends to increase the share of the battery business up to 50% in revenue by the year 2024, while reducing
petrochemical units up to 30%.
LG Chem plans to increase its production capacity to 70 GWh by the end of 2019 and up to 100 GWh in 2020. The expansion will be carried out largely due to enterprises in Poland and China, the company said.
Earlier in December 2019 LG Chem announced the construction of a joint GeneralMotors US Battery Assembly. The products manufactured there will be used in electric vehicles of the American partner.