LG Chem CEO says mulls electric car battery plant in China

LG Chem CEO says mulls electric car battery plant in China

Sat, Mar 1 2014

SEOUL (Reuters) – Chief executive of LG Chem said that the South Korean company was considering building an electric vehicle battery plant in China, expecting Beijing’s efforts to tackle air pollution to drive demand.

Park Jin-soo also said LG Chem, which currently supplies electric-car batteries for General Motors Co’s Volt and Renault cars, will double the number of its customers to 20 in the near future.

“We are considering it (the China car battery plant), which should be in line with market demand,” Park said at a press briefing on Friday embargoed until Sunday morning.

LG Chem currently has a factory in Nanjing, China producing small batteries for smartphones and other mobile devices, and Park said the firm is looking at not only Nanjing and other sites for the potential car battery factory.

China’s Finance Ministry said last month it will extend a program of subsidies for buyers of electric-powered vehicles after the current subsidy regime, part of efforts to combat pollution in cities, expires in 2015.

The subsidies were designed to help China meet a goal of putting half a million new-energy vehicles, defined as all-electric battery vehicles and heavily electrified “near all-electric” plug-in hybrids, on the road by 2015 and 5 million by 2020.

LG Chem’s crosstown rival, Samsung SDI, said in January that it will form a joint venture in China to spend $600 million on building a car battery plant in Xi’an, Shaanxi province, by next year and on other electric car battery-related businesses over the next five years.

 

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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