Supporting over 30 car companies ,LG Chemical 2018 shipments will reach 6GWh

LG Chemical, one of the few chemical-based companies in the global battery industry, recently said revenue would rise by 40 per cent over the next two years as a result of rising battery demand, particularly for electric vehicles and energy storage systems.

According to data, LG Chemical achieved revenue of 25.6 trillion won(about 150.6 billion yuan). Parker Jin-soo, chief executive of LG Chemical, said publicly that the company's revenue is expected to reach 36.4 trillion won(214.2 billion yuan) in the next two years, of which battery revenue may account for about half.

Setting such an ambitious revenue target is LG Chemical based on its optimism for the global market for new energy vehicles and energy storage markets. It is also its focus on power battery orders and energy storage.

In terms of the power cell market, LG Chemical had reached supply agreements with about 30 car manufacturers around the world as of last year, worth 420,000 trillion won. In the United States and Europe, as well as in China, the number of its customers has been growing. In February, LG Chemical also announced its joint venture with India, Mahindra & Co.. Mahindra's partnership, the owner of South Korean car maker Ssangyong, is developing rechargeable batteries.

In the energy storage market, LG chemical energy storage systems shipped 3.7 GWh globally as at the end of December 2017. LG Chemical expects that the company's cumulative global shipment volume in 2018 is expected to exceed 6GWh.

LG Chemical's judgment on the significant increase in shipments is based on the rapid development of the Korean energy storage market and the Japanese industrial and commercial energy storage market in 2018. At the same time, the European, American and Australian markets have also developed rapidly.

It is worth mentioning that in 2017, LG Chemical(Nanjing), a subsidiary of LG Chemical, introduced the ESS battery(energy storage system battery) production line and began to fully deploy the energy storage battery series products, focusing on China and the global market.

Recently, LG Chemical and Kelu Electronics formally established a joint venture company, Lujin, and the joint venture company's main battery PACK. The products are divided into large-scale energy storage products and household energy storage systems at the grid level.

LG Chemical stated that the total capacity of LG chemical base energy storage batteries will reach 7.2 GWh by 2020.

At the same time, in order to further ensure the stable supply of upstream raw materials, on April 10th, LG Chemical and Huayu Cobalt Co., Ltd. jointly established 4 billion yuan to establish two joint ventures of Huajin New Energy and Leyou New Energy, which mainly produce lithium electric ternary precursors and positive materials.

In addition, LG Chemical also announced that this year's investment will be a major upgrade from 2017 in order to protect its revenue target of exceeding US$ 34 billion in 2020. In 2018, LG Chemical will invest 3.8 trillion won, of which 1.1 trillion won will be used for R&D, 140 billion won will be used for facility safety, and 1,500 people will be employed.

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