LG Chem's electric vehicle battery market share reached 24.2%, surpassing CATL and rising to the world's first place

Financial Times reported on July 14, LG Chem stated that the company has orders worth 150 trillion won ($125 billion), which will keep it busy for the next 5 years. And to help the world's largest electric car battery manufacturer survive the new coronavirus pneumonia epidemic.

, which controls about a quarter of the global market, is increasing production capacity to meet the surge in orders caused by stricter environmental regulations in Europe and China. Its strong performance helped it surpass China's CATL and become the industry leader this year.

Market tracking agency SNE Research data shows that despite the impact of the epidemic, global electric vehicle battery sales fell by 24% in the first five months of this year, but in Tesla Model 3, Renault Zoe and Audi E-tron, etc. Driven by popular electric models, LG Chem’s sales jumped 70%.

LG Chem’s market share has soared from 10.8% last year to 24.2% this year, surpassing CATL’s 22.3% and Panasonic’s 21.4%. In the past 4 months, LG Chemical’s stock price has risen by more than half, close to a 10-year high.

LG Chem CEO Shin Hak-cheol predicts that the global electric vehicle market will grow at an annual rate of approximately 35%. By 2024, the share of electric vehicles in the global automotive market will increase from 2.8% last year Rise to as high as 15%.

Xin Xuezhe said: "Driven by stricter environmental regulations in Europe and China, the rapid growth of the electric vehicle market will continue." Europe and China together account for more than 70% of the global electric vehicle market.

Although the outbreak of the new crown epidemic forced LG Chem to cut capital expenditures by 9% this year to about 6 trillion won, the company plans to increase capital expenditures next year, and about 60% of the increase will be invested in the battery business.

This year, LG Chem plans to invest a record 1.3 trillion won (approximately 4% of sales) in research and development, of which about 40% will be used for research and development of electric vehicle batteries.