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LG Chem plans to separate electric car battery business as a new company

South Korea's LG Chem said it plans to separate its battery business as a new company in December

Electric car battery

Reuters  |  SEOUL 

Representative image
Representative image

SEOUL (Reuters) - South Korea's LG Chem, an supplier for Tesla Inc and GM, said on Thursday it plans to separate its battery business as a new company in December.

The new company, to be wholly owned by LG Chem, seeks to "strengthen the expertise and market dominance" by focusing on the battery business, it said.

LG Chem posted an operating profit in its car battery business in the latest quarter and expected further profitability thanks to demand from European car makers and more battery sales of cylindrical batteries used in Tesla cars.

It said it will consider a stock market listing of the battery unit, without elaborating further.


(Reporting by Hyunjoo Jin; Editing by Tom Hogue and Muralikumar Anantharaman)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, September 17 2020. 09:46 IST