[Alpha Biz=(Chicago) Reporter Kim Jisun] The joint venture (JV) of 'Jangxi VL Battery', which was established by LG Energy Solutions to expand its small battery business in China, will be closed.

According to a semiannual report on LG Energy Solutions on the 17th, LG Ensol transferred its stake in the 'Jingxi VL Battery' for free and recognized 12.5 billion won in impairment losses and 1.3 billion won in equity method losses.

"Jingxi VR Battery" is a small battery manufacturing and sales company established in collaboration with China's Veken Technology and an investment company run by authorities in Nanjing.

The free transfer of shares came as Becken Technology, which judged that its business competitiveness was low, decided to end the joint venture project.

The total investment in the joint venture project is 88 million dollars (about 102.8 billion won at the time of the contract) and 52.22 million dollars (about 61 billion won). LG Ensol's investment so far is estimated at 21.8 billion won.

The joint venture shares are 42% of Becken Technology, 34% of LG Chem, and 24% of Nanchang. It was incorporated into LG Ensol when it was split from LG Chem. In 2019, when LG Chem announced its investment decision, LG Chem sought to expand its own small battery market in line with the expansion of LG Electronics' smartphone ODM and entered the Chinese market as part of this. Earlier that year, LG Chem announced that it would invest a total of 1.2 trillion won to expand its battery production plant in Nanjing, China.

 

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