LG Chem to split off EV battery business

Power unit: LG Chem Ltd lithium-ion batteries, designed and integrated by NEC Corp, inside the LS Power Group Gateway Energy Storage project in Otay Mesa, California. The company is weighing an IPO for its electric-vehicle battery unit. — Bloomberg

SEOUL: South Korean petrochemicals maker LG Chem Ltd will split off its electric-vehicle (EV) battery business into a separate entity, seeking to carve out value as global EV demand increases.

The battery business, to be called LG Energy Solution Ltd, will be 100% owned by LG Chem and be separated as of Dec 1, the company said in a regulatory filing yesterday. LG Chem is weighing an initial public offering for the unit, with a decision to be made later. A shareholder meeting to seek approval will be held on Oct 30.