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UPDATE 2-LG Energy Solution applies for preliminary IPO approval -Korea Exchange

·1 min read

(Adds analyst comment in paragraph 7)

SEOUL, June 8 (Reuters) - South Korea's battery maker LG Energy Solution Ltd has applied for preliminary approval for an initial public offering, Korea Exchange said on Tuesday.

The South Korean electric vehicle (EV) battery maker, wholly owned by LG Chem Ltd, was separated from LG Chem last year.

LG Energy Solution is one of the world's top EV battery makers, supplying Tesla Inc and General Motors Co .

It said a statement that the company plans to complete the listing this year.

LG Energy Solution's IPO plan comes as global sales of battery-powered electric cars are expected to have reached nearly 2.5 million in 2020 and are set to rise by 70% in 2021, according to IHS Markit.

The South Korean battery maker said it plans to use proceeds of the IPO to secure business competitiveness and expand facility investment funds in response to the growing market demand for EVs.

Analysts said money raised through issuance of new shares will be used for the company's capital expenditure investment, especially for its investment in battery production in the United States.

In March, LG announced plans to invest more than $4.5 billion in its U.S. battery production business by 2025. (Reporting by Heekyong Yang; Editing by Kirsten Donovan and Louise Heavens)

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