By Kwanwoo Jun
LG Energy Solution Ltd. plans to invest about 7 trillion won ($5.55 billion) this year in expanding its global electric-vehicle battery production.
The South Korean EV battery supplier of Tesla Inc., General Motors Co. and other big auto makers, plans to boost its annual output capacity to 520 gigawatt-hours globally by 2025 from 200 GWh in 2022.
The planned facilities investment is to build or expand EV battery plants in the US and China to meet growing demand, it said in a post-earnings conference call Wednesday.
The company has EV battery-production facilities either running or being built in South Korea, Poland, China and North America, where its investment is focused.
LG Energy is building three joint-venture EV battery plants with General Motors in the US and one with Stellantis NV in Canada. LG Energy also has two wholly owned separate EV plants in the US
LG Energy’s first-quarter net profit plunged 48%, as higher raw-material prices and global chip shortages as well as the war in Ukraine and supply-chain disruptions weighed on global EV shipments.
Net profit was 226.60 billion won ($179.7 million), compared with KRW433.60 billion a year earlier.
That beat a FactSet-compiled consensus forecast for net profit of KRW206.40 billion.
Revenue rose 2.1% to KRW4.342 trillion and operating profit fell 24% to KRW258.90 billion, matching the company’s preliminary forecasts.
LG Energy raised its revenue target by 7.3% to KRW19.2 trillion for 2022, citing solid demand for cylindrical batteries this year.
Write to Kwanwoo Jun at [email protected]
Credit: www.marketwatch.com /