LG New Energy’s sales in the second quarter are US$4.58 billion, and Hyundai plans to invest in a US$1.1 billion joint venture with Hyundai to build a battery plant in Indonesia.

LG New Energy’s sales in the second quarter were US$4.58 billion and operating profit was US$730 million. LG Chem expects that the sales growth of electric vehicles in the third quarter will drive the sales growth of car batteries and small IT batteries. LG Chem will continue to work hard to improve profitability by expanding production lines and reducing costs as soon as possible.

LG Chem Announces 2021 Second Quarter Results:

Sales of 10.22 billion U.S. dollars, an increase of 65.2% year-on-year.
Operating profit was US$1.99 billion, a year-on-year increase of 290.2%.
Both sales and operating profit hit a new quarterly record.
*The performance is based on the currency of the financial report, and the U.S. dollar is for reference only.

On July 30, LG Chem released the second quarter of 2021 results. Both sales and operating profit reached a new quarterly record: sales of 10.22 billion U.S. dollars, an increase of 65.2% year-on-year; operating profit of 1.99 billion U.S. dollars, an increase of 290.2% year-on-year.

Among them, the sales of advanced materials in the second quarter were 1.16 billion U.S. dollars and operating profit was 80 million U.S. dollars. LG Chem said that due to the continuous increase in demand for cathode materials and the rapid increase in the price of engineering materials, sales continued to rise and profitability continued to increase. With the expansion of the battery materials business, sales are expected to continue to grow in the third quarter.

LG New Energy’s sales in the second quarter were US$4.58 billion and operating profit was US$730 million. LG Chem said that despite short-term factors such as weak upstream supply and demand and weak downstream demand, sales and profitability have improved. It is expected that the sales growth of electric vehicles in the third quarter will drive the sales growth of car batteries and small IT batteries. We will continue to work hard to improve profitability through measures such as adding production lines and reducing costs as soon as possible.

Regarding the second quarter results, LG Chem’s CFO Che Dong Suk said, “Through the significant growth of the petrochemical business, the continuous expansion of the battery materials business, and the overall development of each business unit, including the highest quarterly sales in life sciences, LG Chem’s second-quarter Outstanding quarterly performance”.

Che Dongxi also emphasized: “LG Chem will comprehensively promote business development and strategic investment based on the three new ESG growth engines of sustainable green materials, e-Mobility battery materials, and global innovative new drugs.”

The battery network noted that the survey results released by SNE Research on July 29 showed that the cumulative installed capacity of electric vehicle batteries worldwide was 114.1GWh in the first half of this year, an increase of 153.7% year-on-year. Among them, in the global ranking of the cumulative installed capacity of electric vehicle batteries in the first half of this year, LG New Energy ranked second in the world with a market share of 24.5%, and Samsung SDI and SK Innovation each ranked fifth and number one with a market share of 5.2%. six. The market share of the three global power battery installations reached 34.9% in the first half of the year (basically the same as 34.5% in the same period last year).

In addition to LG New Energy, another South Korean battery manufacturer Samsung SDI also achieved good results in the second quarter of this year. According to foreign media reports, Samsung SDI said on July 27 that thanks to a low base effect and strong sales of electric car batteries, the company’s revenue in the second quarter of this year increased nearly five times. Samsung SDI stated in a regulatory document that from April to June this year, the company’s net profit reached 288.3 billion won (approximately US$250.5 million), higher than the 47.7 billion won in the same period last year. In addition, the company’s operating profit increased by 184.4% year-on-year to 295.2 billion won; sales increased by 30.3% year-on-year to 3.3 trillion won.

In addition, LG New Energy also said on the 29th that the company will establish a battery joint venture with Hyundai Motor in Indonesia, with a total investment of 1.1 billion US dollars, half of which will be invested by both parties. It is reported that the construction of the Indonesian joint venture plant will begin in the fourth quarter of 2021 and is expected to be completed in the first half of 2023.

Hyundai Motor stated that this cooperation aims to provide a stable battery supply for the upcoming electric vehicles of its two affiliated companies (Hyundai and Kia). According to the plan, by 2025, Hyundai Motor plans to launch 23 electric models.