Published : Sept. 25, 2016 - 16:46
[THE INVESTOR] South Korea’s battery and chemical company LG Chem said Sunday it set a goal of reaching 7 trillion won ($6.3 billion) in sales for electric vehicle batteries by 2020. The battery-maker also plans to start the construction of its EV plant in Poland this year, marking its third global presence after the US and China.
“We aim to become the No. 1 electric car battery-maker by 2018 in terms of market position, technology and profitability by leading the EV market poised to grow,” said Lee Woong-beom, chief of LG Chem’s battery business division.
The company plans to triple EV battery sales to 3.7 trillion won by 2018 from this year’s sales and to ultimately reach 7 trillion won by 2020. This goal could be achieved thanks to the improved electric car market condition, LG Chem said.
“In the past, only 60 to 70 percent of orders were actually realized for EV battery projects. Now, the rate has been raised to 80 to 90 percent due to the improved market condition,” the company’s official said.
The cumulative sales figure of the company’s battery business has already surpassed 36 trillion won, winning 82 orders from 28 automakers globally.
LG Chem also said it would break ground on its new electric car battery plant in Wroclaw, Poland this year with an aim of boosting its sales in the European region where the EV maket continues to grow.
According to research firm IHS Automotive, the eco-friendly car market in Europe -- electric, plug-in hybrid and hybrid -- rose around 40 percent in 2015 from the previous year.
LG Chem said it plans to find new clients in the region with its cost-saving and high performance cells. The company will target modules whose height is below 100 millimeters and can be installed on the bottom parts of vehicles. They are recently gaining traction in the European electric car market.
The company will also continue to work with its key US clients including General Motors, Ford and Chrysler through local presences including its production plant LG Chem Michigan and research center LG Chem Power.
The battery-maker is reportedly in talks with US electric carmaker Faraday Future to supply its 50,000 battery units.
The global electric car battery market is expected to triple from $11 billion last year to $32 billion by 2020, according to the US banking company Merrill Lynch.
By Shin Ji-hye/The Korea Herald (shinjh@heraldcorp.com)