[Featured Stock] 'Electric Vehicle Battery' Replacement Expectations... Amogreentech Surges Over 20%

[Image source=AP Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Amogreentech is soaring on expectations of benefiting from Tesla's electric vehicle battery replacement.

As of 10 a.m. on the 26th, Amogreentech is trading on the KOSDAQ market at 17,500 KRW, up 25.00% from the previous day. During the session, it traded at 17,650 KRW, hitting a 52-week high.

The company has been on a four-day consecutive rise since the news broke on the 21st that Tesla will completely replace the batteries used in its Standard Range electric vehicles from NCA (Nickel-Cobalt-Aluminum) to LFP (Lithium Iron Phosphate) batteries.

Amogreentech, an electronic components manufacturer, produces core materials for the 4th industrial revolution such as ESS (Energy Storage Systems), flexible batteries, nanomembranes, and thin films. In the ESS business sector, sales of lithium iron phosphate (LEP) batteries in China are gaining momentum.

Tesla is currently manufacturing electric vehicles equipped with LFP batteries at its Shanghai factory. Electric vehicles equipped with LFP batteries are sold in China, Europe, and the Asia-Pacific region.

According to Roskill, a market research firm specializing in raw material supply chains, 95% of the world's LFP batteries are produced in China. LFP batteries are mainly produced by Chinese companies CATL and BYD, and Tesla also procures batteries from CATL.

LG Chem also stated during its Q3 earnings conference call the previous day, "LFP batteries have cost competitiveness and are expanding in low-priced vehicles," adding, "However, they are heavy and have low energy density, which is a common challenge for the battery industry to overcome."