Adds LG Chem remarks on CATL, discuss movement
SEOUL, July 31 (Reuters) – LG Chem 051910.KS, an electric car battery provider for Tesla TSLA.O, Volkswagen VOWG_p.DE as well as many others, said on Friday it expects sustainability in its own battery industry to grow from the second half, helping stocks spike almost 10%.
“Earnings are expected to increase and sustainability is forecast to stay strong thanks to higher EV imports for European automakers and raised earnings for cylindrical EV batteries,” LG Chem said.
The organization didn’t mention Tesla, however, it provides small cylindrical-type batteries to the carmaker’s China models.
LG Chem’s energy alternatives department, making batteries for smartphones and automobiles, swung to an operating profit in the next quarter, partially because of enhanced productivity in its Poland mill which caters to European clients like Volkswagen and Audi.
LG Chem stated its factory usage rates have normalized starting May following the coronavirus outbreak had contributed to temporary mill suspensions in automakers at the U.S. and Europe.
Tesla CEO Elon Musk has stated the company would expand its business using Panasonic 6752.T, CATL 300750.SZ and LG Chem, including that the true limit to it’s expansion is battery mobile generation for an economical price.
Musk stated Tesla’s Shanghai factories will create a few Model 3 sedans using all the so-called lithium-iron-phosphate (LFP) batteries at bulk beginning later this season.
LG Chem stated its batteries have an advantage on the more economical, LFP batteries out of Chinese rival and Tesla provider CATL, stating the latter’s reduced energy density makes it hard to be utilized for longer-range, big automobiles.
“The LFP batteries may be utilised in comparatively short-range cars that are sensitive to costs… We think our nickel-cobalt-manganese (NCM) batteries may be mainstream worldwide,” explained Chang Seung-se, senior vice president at LG Chem, speaking to its nickel-based batteries.
LG Chem, however, said it’s attempting to “catch up” with LFP batteries concerning cost efficiencies.
(Reporting from Hyunjoo Jin and Heekyong Yang; Additional reporting by Joyce Lee; Testing by Stephen Coates and Krishna Chandra Eluri)
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