[Featured Stock] Powernet Rises on LG Energy Solution's 100 Trillion Won Success and Spotlight on LFP Battery Technology

[Asia Economy Reporter Minwoo Lee] Powernet, a developer of lithium iron phosphate (LFP) battery pack modules, is experiencing a rise in its stock price. This is attributed to the anticipation of a record-breaking success in LG Energy Solution's initial public offering (IPO), which has also heightened expectations for the expansion of the LFP battery market.

As of 10:26 AM on the 13th, Powernet's stock price rose 7.49% from the previous day to 5,730 KRW. The expectation that Powernet will benefit from the LFP-related market growth appears to be driving this increase, following LG Energy Solution's overwhelming popularity in its demand forecast targeting institutional investors.

According to the financial investment industry on the 13th, the demand forecast for LG Energy Solution conducted on the 11th and 12th for institutional investors is estimated to have reached a record-breaking order amount of 1,518 trillion KRW. This is because about 1,700 participating institutions mostly placed orders for the maximum quantity at the top end of the public offering price, 300,000 KRW. Consequently, with a competition rate exceeding 1,500 to 1, the order amount is believed to have surpassed 1 quadrillion KRW.

This popularity has increased expectations for the expansion of the LFP market driven by LG Energy Solution. Kang Dongjin, a researcher at Hyundai Motor Securities, explained, "LG Energy Solution is expected to enter areas where Chinese companies have traditionally been strong, such as applying LFP batteries to energy storage systems (ESS) starting in 2023."

Meanwhile, Powernet is engaged in acquiring international certification for LFP and developing battery pack modules. In May 2020, it signed a memorandum of understanding (MOU) with CEL, a Chinese battery cell specialist company, and entered the battery module business. It is reported that Powernet obtained international electrical and electronic certification for one model of CEL's cylindrical LFP battery and began developing battery pack modules.