[Asia Economy Reporter Hyungsoo Park] Naintech is showing strong performance. It appears that the news of General Motors (GM), a leading American automobile company, transforming into an electric vehicle manufacturer is influencing its stock price.
As of 9:40 AM on the 29th, Naintech is trading at 5,840 KRW, up 7.75% from the previous day.
Major foreign media reported that GM announced a policy to globally cease production and sales of gasoline and diesel engine vehicles by 2035. GM's declaration of transformation into an electric vehicle company is considered to be much more advanced than other major automakers.
Mary Barra, GM's Chief Executive Officer (CEO), stated in a press release, "We have decided to join the efforts of countries and companies worldwide to create a safer, greener, and better world to live in."
After 2035, GM will produce only electric vehicles. Commercial heavy trucks will continue to be sold after 2035.
According to foreign media, "GM will invest $27 billion (approximately 30.186 trillion KRW) in electric vehicles and related products from 2020 to 2025," adding that this investment exceeds that for gasoline and diesel vehicles. The investment amount includes factory refurbishment and battery production investments in partnership with LG Chem.
LG Chem is building a factory in Ohio as part of a joint venture with GM. LG Chem's battery division has been spun off as LG Energy Solution.
Researcher Boyoung Choi from Kyobo Securities explained, "Naintech's secondary battery sales are 100% from the customer LG Energy Solution," and "According to the customer's battery manufacturing method, Lamination & Stacking, Naintech exclusively supplies the relevant equipment."
She added, "While strengthening its foundational capabilities through workforce expansion and facility enlargement, the company is manufacturing specialized equipment that fits the customer's battery production method," and "Continuous order increases are expected due to the expansion of the upstream industry."
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