Tesla battery supplier LG Energy Solutions has stellar stock debut

LG Energy Solutions rocketed out of the gate and has become the second-most valued company in South Korea after a successful IPO.

The company’s stock price soared 68 per cent on its trading debut.

Although the IPO was on the South Korean market, the LG Energy Solutions IPO was not a Korean only investment. Over 2,000 perspective foreign and domestic institutional investors bid $12.8 trillion in LG’s IPO.

In addition, 4.4 million retailer investors bid a record $95 billion to subscribe to LG Energy Solution shares, reports Reuters.

LG Energy Solutions now only sits behind Samsung Electronics in terms of market value in South Korea. However, in terms of battery players, LG Energy Solution is still miles behind its Chinese rival CATL in terms of valuation.

Both LG Energy Solutions and CATL face the same challenges when it comes to batteries. They both are third-party solutions, and face competition from OEMs and other battery manufacturers.

However, both companies have long-term contracts with major players. LG Energy Solutions works with Tesla, Ford, GM,  and Audi, among others. At the same time, CATL has battery contracts with Tesla, Honda, VW and Toyota, among others.

At the moment, both companies have sizable backlogs and continue to develop and invest in markets across the globe.

Previous Article

Tesla buys rail track to make Giga Berlin employee commute easier

Next Article

Natural Resources Canada raising awareness on ZEV in Ontario

You might be interested in …