The company’s first-quarter earnings beat analysts’ estimates.
Due to the demand for electric vehicles and US tax advantages, South Korean battery manufacturer LG Energy Solutions Ltd. is sure that it will achieve its target of 30% sales growth this year.
Although the market in Europe seems to be constrained and metal prices are declining, CFO Lee Chang-sil declared, “We are confident that we will be able to reach our original target of 30% sales growth this year.”
LG signs a $23 billion deal to provide battery materials.
Aiming to eventually have around 250 gigawatt-hours of production capacity in the US, LG, which provides batteries to Tesla Inc., General Motors Co., and Ford Motor Co., is developing cylindrical batteries and energy storage systems based on lithium iron phosphate batteries.
The South Korean business is sure it can outperform its Chinese rivals, at least in the US. It will be difficult for Chinese businesses to join the US because it takes a long time to build up supply chains and experience, according to Li.
Early trading in Seoul saw a 2.4% increase in LG Energy shares, increasing the year’s gain to roughly 30%.