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[Alpha Biz=(Chicago) Reporter Kim Jisun] LG Energy Solution has made it official for the first time to enter the LFP (lithium ferrophosphate) battery market for low- and medium-priced electric vehicles dominated by Chinese companies.
LG Energy Solution has decided to compete with China in the LFP battery market because it believes that current premium products alone cannot cope with the rapidly changing global demand for electric vehicles. LFP batteries, which are mainly made by Chinese companies such as CATL· Viyadi, are targeting finished car makers with low prices. It is making up for the short mileage due to low energy density with price competitiveness. The fact that automakers are increasing production of low-end electric vehicles in response to slowing demand for electric vehicles is also leading to an increase in LFP battery adoption.
LG Ensol announced on the same day that its operating profit in the third quarter of this year was 731.2 billion won, up 40.1% from the same period last year. It is the largest quarterly record. Sales rose 7.5 percent over the same period to 8.2235 trillion won.
LG Ensol plans to continue its bold investment by increasing profitability by cost innovation and maximizing production efficiency. After investing 7.6 trillion won to expand new production at the U.S. GM joint plant by the third quarter of this year, the company plans to invest more than 10 trillion won (accumulated) by the end of the year.
AlphaBIZ 김지선(stockmk2020@alphabiz.co.kr)
