[Asia Economy Reporter Hyungsoo Park] Shinsung Delta Tech continues its sharp rise for the second consecutive day. It appears that the news of LG Chem deciding on a large-scale investment to nurture the world's No.1 battery company is influencing the stock price.
As of 10:34 AM on the 18th, Shinsung Delta Tech is trading at 5,930 KRW, up 19.68% from the previous day.
LG Chem's decision to spin off its battery business comes as it has secured an order backlog exceeding 150 trillion KRW in the electric vehicle battery business, and with annual facility investments exceeding 3 trillion KRW, the need to timely secure large-scale investment funds has increased.
LG Chem plans to raise the sales of the newly established corporation to over 30 trillion KRW by 2024 and nurture it into the world's top energy solutions company centered on batteries.
Along with this, the new corporation will be developed into an energy solutions company with differentiated competitiveness in the 'E-Platform' field, providing various services throughout the battery lifetime, including battery materials, cell and pack manufacturing and sales, as well as battery care, leasing, charging, and reuse.
Shinsung Delta Tech views the secondary battery business as the group's future core business based on the growth of the upstream industry and is focusing its capabilities accordingly. The subsidiaries responsible for producing secondary battery parts for Shinsung Delta Tech are Shinsung Automotive and Shinsung ST.
Shinsung Delta Tech's major secondary battery customer is LG Chem. After Korea and Nanjing, China, it established a local corporation in Poland at the end of 2018.
The local corporation in Poland was established as a joint venture with Shinsung Automotive and Shinsung ST, subsidiaries of Shinsung Delta Tech, each investing 50%. It mass-produces secondary battery parts for electric vehicles.
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