|Bid||324,500.00 x 0|
|Ask||325,000.00 x 0|
|Day's Range||318,500.00 - 326,500.00|
|52 Week Range||301,000.00 - 385,000.00|
|Beta (3Y Monthly)||0.70|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 24, 2019 - Oct 29, 2019|
|Forward Dividend & Yield||6,000.00 (1.85%)|
|1y Target Est||453,379.00|
(Bloomberg) -- Porsche is in discussions to procure electric-car batteries from China’s Contemporary Amperex Technology Co. Ltd., as global automakers widen their supplier networks to secure the key components for future vehicles.The German carmaker and CATL are “in good talks,” Porsche research and development chief Michael Steiner told reporters Wednesday in the city of Fuzhou, China, adding he meets with CATL management regularly. “They are really catching up.”Sufficient battery supplies are crucial for automakers vying for pole position in the burgeoning electric-car market. While Porsche parent Volkswagen AG has already picked CATL as one of its suppliers, the first all-electric Porsche -- unveiled on Wednesday -- uses batteries from South Korea’s LG Chem Ltd.Adding a high-profile customer such as Porsche would be a boon for CATL as it seeks an edge over competitors LG Chem, Panasonic Corp. and BYD Co. CATL is building a plant in Germany to strengthen its presence in Europe -- the region where Porsche builds all its vehicles. The battery maker has already secured local premium brand BMW AG as a customer.Panasonic has a long-standing relationship with electric-car leader Tesla Inc., though the U.S. marque is also said to be buying batteries from LG Chem for cars that will be built in its new China factory. Porsche’s sister brand Audi, maker of the e-Tron electric vehicle, is in advanced talks to buy batteries from China’s BYD, people familiar with the matter have said.Porsche’s China chief, Jens Puttfarcken, said Wednesday the carmaker is working to get an exemption from a 10% purchase tax in the country for its electric vehicles, something Tesla already obtained. The German brand probably won’t get it by the time the newly introduced all-electric Taycan starts selling, but is confident it can get it within 2020, he said in an interview in Fuzhou.“We are working intensively with Chinese authorities,” Puttfarcken said.To contact Bloomberg News staff for this story: Chunying Zhang in Shanghai at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Ville Heiskanen, Angus WhitleyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
A feud between two South Korean battery makers escalated on Friday as SK Innovation Co Ltd said it plans to sue bigger rival LG Chem Ltd in the United States over alleged patent infringement related to electric vehicles (EV). The proposed new lawsuit by SK Innovation drew a swift denunciation from LG Chem, which called the action "groundless" and said it would seek compensation. The two companies have been at loggerheads since LG Chem sued SK in the United States in April for alleged theft of trade secrets by hiring former LG Chem employees.
South Korea's LG Chem Ltd is pushing for the localisation of some battery parts in an effort to reduce its dependence on Japan amid a deepening political and economic feud, its president said on Wednesday. LG Chem, which counts the likes of Apple Inc and General Motors as customers for batteries used in phones and electric vehicles, is bracing for the possible fallout from an escalating trade spat with Japan stemming from the latter's wartime past. Effective Wednesday, Tokyo dropped South Korea from a so-called "white list" of favoured trade partners, which could lead to more paperwork and on-site inspection for some Japanese exporters.
Today, citing people familiar with the matter, Bloomberg reported that Tesla (TSLA) had agreed to buy batteries from LG Chem (LGCLF).
(Bloomberg) -- Tesla Inc. agreed to buy batteries from South Korea’s LG Chem Ltd. to be used in electric vehicles produced out in China, according to people familiar with the matter.Batteries made by LG Chem will be used initially in Model 3 cars manufactured in the plant near Shanghai, Tesla’s first outside of the U.S, said the people, asking not to be identified discussing a private matter. LG Chem batteries will also be used in Model Ys produced there once the compact crossover car is released, they said. Shares of LG Chem jumped.The supply agreement isn’t exclusive to LG Chem, the people said, meaning Tesla could procure batteries from other suppliers as the Model 3 maker prepares to start production in China later this year, part of the EV pioneer’s push into what is the world’s biggest market for new-energy vehicles.Tesla plans to use multiple battery suppliers for its China-made cars, the people said, and has also been in talks with top Chinese battery producer Contemporary Amperex Technology Co. Ltd. about a supply deal, Bloomberg reported in March. Tesla has a long-standing relationship with Japan’s Panasonic Corp., which makes batteries with the carmaker in Nevada.Key StepSecuring battery supply is a key step in Chief Executive Officer Elon Musk’s plan to expand in China, an increasingly important market for the loss-making company as incentives for EVs in the U.S. wane. While Tesla has a strong following in China, local rivals have a head start thanks to significant support for the sector from Beijing. Imported vehicles are made costlier by tariffs, while locally built EVs enjoy government incentives.For Seoul-based LG Chem, winning an order from a high-profile customer like Tesla bolsters its profile as one of the world’s emerging battery-making powerhouses.Shares of the South Korean company climbed 3% in Seoul. CATL dropped 2.2% in Shenzhen and Panasonic advanced 0.2% in Tokyo.The $18 Billion Electric-Car Bubble at Risk of Bursting in ChinaA spokesman for LG Chem said the company doesn’t comment on issues related to customers. Representatives for Tesla in China didn’t respond to multiple requests for comment. A CATL representative declined to comment.Talks with CATL are continuing, but are taking time as the two sides discuss technical specifications, according to the people. LG Chem was more flexible in meeting Tesla’s technology requirements, one of the people said.More CapacityLG Chem will provide Tesla with so-called 21700 type battery cells, which have more capacity than some older battery types, one of the people said. They will be made at LG Chem’s factory in Nanjing, which is about 200 miles (320 kilometers) west of Shanghai.A unit of South Korea’s fourth-largest conglomerate, LG Chem is the world’s second-biggest manufacturer of lithium-ion battery cells, according to BloombergNEF. The company is seeking to reduce its reliance on chemical production by boosting sales of electric-vehicle batteries. It has supply deals with Volvo Cars to Renault SA and General Motors Co.Tesla broke ground on the factory outside Shanghai on Jan. 7, after years of negotiations with Chinese authorities to become the first foreign automaker to wholly own a manufacturing facility in the country. Tesla plans to start producing cars at the factory by the end of 2019.But Tesla is doubling down on China at an uncertain time for the company and the country.Though electric-vehicle sales are rising in China, growth is being held back by the government’s move to phase out subsidies on EV purchases. China’s overall auto market is suffering a historic slump, with the industry’s total sales in decline for more than a year.Tesla is also up against stiff competition. BYD Co., an EV giant backed by Warren Buffett’s Berkshire Hathaway Inc., and other domestic contenders such as upstart NIO Inc. are winning users with their locally-built cars, and premium rivals such as BMW AG and Daimler AG are starting to bring their electric models to the market.\--With assistance from Chunying Zhang, Sohee Kim and Tian Ying.To contact Bloomberg News staff for this story: Haze Fan in Beijing at email@example.comTo contact the editors responsible for this story: Young-Sam Cho at firstname.lastname@example.org, Ville HeiskanenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
SEOUL/SHANGHAI Aug 23 (Reuters) - U.S. electric vehicle maker Tesla Inc is in advanced talks with South Korea's LG Chem Ltd to source batteries for vehicles to be made in its Shanghai plant, a person familiar with the matter said. The move represents a push by Tesla to diversify sources of the key component for its electric vehicles from its exclusive supplier, Japan's Panasonic Corp. Another source said LG Chem agreed to supply batteries for Tesla's China plant, without elaborating.
Investing.com - U.S. futures inched higher on Friday ahead of a speech from Federal Reserve Chairman Jerome Powell at the central bank's annual gathering in Jackson Hole, Wyoming.
SEOUL/SHANGHAI (Reuters) - U.S. electric vehicle maker Tesla Inc is in advanced talks with South Korea's LG Chem Ltd to source batteries for vehicles to be made in its Shanghai plant, a person familiar with the matter said. The move represents a push by Tesla to diversify sources of the key component for its electric vehicles from its exclusive supplier, Japan's Panasonic Corp . Another source said LG Chem agreed to supply batteries for Tesla's China plant, without elaborating.
South Korean battery maker LG Chem Ltd said on Thursday it had agreed to invest 500 billion won ($424.03 million) to build a factory in South Korea to produce cathode material for lithium-ion batteries. Cathode production will start from late 2022, said a company official. The company is one of the leading electric vehicle battery makers in the world and counts General Motors and Volkswagen among its customers.
A Congolese army officer arrived in the village of Kafwaya in June and warned residents not to trespass on a major Chinese copper and cobalt mine next door. Deploying soldiers to clear tens of thousands of illegal informal miners from mining concessions is a new approach by the authorities in Democratic Republic of Congo, who have wrestled with the problem for decades.
SEOUL/DETROIT (Reuters) - South Korean electric vehicle (EV) battery maker LG Chem is considering building a second U.S. factory, three people familiar with the matter said, accelerating a race to add capacity to meet growing global demand for green vehicles. LG Chem, one of the leading EV battery makers in the world that counts General Motors and Volkswagen among its customers, is weighing investing about 2 trillion won ($1.70 billion) in the plant that could begin production in 2022, one of the people said. Automakers are pushing ahead with billions of dollars in investments in electric vehicles to meet global regulatory requirements.
(Bloomberg Opinion) -- Is there any hope that the fast-decoupling U.S. and Chinese governments can resolve their trade dispute, and inject a bit of pep into the weakening global economy? Yes – but the path toward a deal is narrowing.As we’ve argued in the past, intellectual property is one area where the interests of the U.S. and China are surprisingly well aligned. Lax enforcement formed the core of U.S. Trade Representative Robert Lighthizer’s criticism of China under Washington’s Section 301 regulations, so a breakthrough at the G-20 summit in Osaka would represent a symbolic victory for the U.S. For his part, President Xi Jinping has made IP reform a signature issue, not least because Chinese businesses are growing more sophisticated and assembling their own portfolios of patents and trademarks they want to see protected.China, moreover, has been quietly reforming in many of the ways that the U.S. wants to see. It has progressively trimmed its negative list of industries where foreign investors are required to operate in joint ventures with local companies. These are one of the prime potential conduits for IP leakage, since the intangible assets must generally be vested in the local venture as a requirement for getting an operating license. By this point, though, most industries are open to wholly foreign-owned units.China’s ranking in the U.S. Chamber of Commerce’s IP Index stood still in 2019 after years of steady improvement, but it remains well ahead of the likes of Turkey, Chile, Brazil, Thailand and Vietnam. The new foreign investment law passed earlier this year contains a prohibition on forced technology transfer, although the proof of such measures will be how they’re enforced. The IP legal regime in China is improving, with courts becoming more consistent in handling technical issues, especially for local firms, according to analysts at Gavekal Dragonomics.There are many reasons why individual Chinese companies may want to steal technology from U.S. counterparts, but Beijing has an even bigger reason to clamp down. Chinese leaders know that if they're to become technologically independent, they will have to take the training wheels off and learn to walk on their own.Take electric vehicles. One reason that so few foreign-branded electric cars are made in China, the world’s biggest market for such vehicles, is that the playing field is tilted against them. As a result, Chinese-made EVs remain technologically inferior to many models produced overseas. This month, the government scrapped a four-year-old policy of publishing an approved list of battery makers, which had effectively shut out industry leaders such as South Korea’s Samsung SDI Co. and LG Chem Ltd.Korean firms lead Chinese peers by six months to a year and a half in evolving battery chemistry and technology, according to JPMorgan Chase & Co. analysts. Allowing equal participation earlier could have helped battery technology migrate faster. Instead, lagging technology has hurt demand for electric cars in China, with local manufacturers hit hardest. While it would be hard to tie IP enforcement – a long, slow and technically difficult process – to the immediately measurable matters of trade and tariffs, some sort of announcement would provide great optics for both sides.Reality would need to expend beyond a handshake and a photo op, however. The exact details of how China would implement stronger protection will make all the difference. It could include a set of new laws, or merely more attention to existing regulations. And with cases such as Micron Technology Inc. fresh in many Americans minds, there's good reason for the U.S. side to be wary of any promises Beijing might make.There’s a further problem with extending an olive branch on this issue: Their value has fallen drastically in recent months thanks to the U.S. administration’s chaotic approach to trade negotiations.The last time a major U.S. trade partner made a significant concession to Washington’s trade demands is when Mexico signed up to President Donald Trump’s reformed version of the North American Free Trade Agreement. For all its relatively limited nature, that deal contained rules on auto worker minimum wages that would keep a large slice of carmaking supply chains north of the border. This trade-off counted for nothing, though, when Trump last month threatened rising tariffs on Mexico to force action on illegal immigration. That’s the problem with the current situation. There are ways that China and U.S. could come to a stopgap agreement that would at least slow the darkening tide of protectionism – but that would depend on a level of trust between the two sides that seems to have all but vanished. There’s a slim hope that peace can still break out in this trade war. But the drumbeat from both sides has kept getting louder.\--With assistance from Tim Culpan. To contact the authors of this story: David Fickling at email@example.comAnjani Trivedi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.David Fickling is a Bloomberg Opinion columnist covering commodities, as well as industrial and consumer companies. He has been a reporter for Bloomberg News, Dow Jones, the Wall Street Journal, the Financial Times and the Guardian.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg Opinion) -- Dan Loeb wants to split up Sony Corp. to enhance its value. The company isn’t the only household name in Japanese electronics that might benefit from the treatment.Panasonic Corp. shares have dropped more than 40% over the past 12 months after a partnership with Tesla Inc. disappointed; the company forecast earnings will decline; and a restructuring plan put forward last month failed to convince investors. The firm is trading on a multiple of 3.8 times enterprise value to Ebitda, compared with a five-year average of 4.6 times.Loeb’s Third Point LLC has called for a spinoff of Sony’s semiconductor business, aiming to reduce the stock’s so-called conglomerate discount – the situation where a company is valued at less than the sum of the different businesses it owns. It’s an analysis that could equally be applied to Panasonic.Last month, the Osaka-based company released a mid-term plan that will increase its number of divisions to seven from four. Panasonic aims to shift its focus away from the automotive business, which is struggling under the shadow cast by the difficulties in its relationship with Tesla. The electronics maker also announced a series of partnerships and alliances, and estimated restructuring costs of about 90 billion yen ($840 million), according to Goldman Sachs Group Inc.Analysts say Panasonic still doesn’t have a coherent strategy, and investors clearly want more change. So could a breakup be the solution?The answer from a sum-of-the-parts analysis is a clear: maybe. If Panasonic listed all its business segments separately and they traded at the mid-point of their peer-group ranges of between 4 times and 9 times enterprise value to Ebitda, then the combined value would be 2% higher than the company’s current market capitalization of about $20 billion. At the high end of the ranges, Panasonic could increase its value by as much as 32%. At the low end, though, there’s a similar amount of downside.(1)Analysts in Japan have questioned Loeb’s proposal for Sony. While they lauded his effort to improve the company’s valuation, they also cast doubt on whether the activist investor’s proposals were feasible or made strategic sense. A Sony split may unlock value now but, as my Bloomberg Opinion colleague Tim Culpan asked, what’s the vision for the future? As Sony analysts have pointed out, Loeb has reversed course since 2013, when he recommended that the company sell part of its film unit.This uncertainty is precisely where a breakup proposal may make sense for Panasonic, though. Pulling apart its various businesses – grouped broadly under appliances, automotive and industrial systems, connected solutions and eco solutions – would enable investors to put their money where they see value and growth prospects, without being encumbered by laggard businesses.For instance, sales for the connected solutions segment rose 6.9%(2) in the 2019 fiscal year, helped by the Tokyo Olympics in 2020 and growing demand from businesses to help automate tasks. Itochu Techno-Solutions Corp., which competes in a similar business, is trading on a forward price-earnings ratio of 23 times.Panasonic thought the automotive business would drive its profitability over the past three years. Even here, running the unit separately could create more value. Panasonic has teamed up with Toyota Motor Corp. and already has partners other than Tesla. With demand for electric cars and the pace of adoption being reassessed, the company could take time to leverage its technology advantage. In the process, the segment’s rising fixed costs won’t weigh down other more profitable businesses. In fact, investors might give a standalone battery business a higher valuation, as they’ve done with South Korean battery-makers Samsung SDI Co. and LG Chem Ltd.Analysts at Credit Suisse AG downgraded the stock on Friday, noting that they see “no signs of a rebound in earnings in the near term,” and that it was unclear how the company and its profit would look after the restructuring. Earnings at the auto business, where the analysts earlier saw potential for sales growth, is unlikely to improve over the medium term, they said.There are additional reasons why a breakup should be considered. For one, the government is incentivizing spinoffs with tax breaks. Meanwhile, domestic institutional investors are becoming more activist: The rejection rate for takeover defense measures has risen over the past six years to 80.5% from 40%, according to Goldman Sachs. That’s close to the 85% rate for foreign investors.Panasonic has some thinking to do. Loeb, meanwhile, might just have a new target. --With assistance from Elaine He. (1) Sum-of-the-parts analysis for Panasonic is based on FY2019 operating profit for each segment and used the following assumptions:1. Average enterprise value to earnings before interest, taxes, depreciation and amortization for peer group of each segment.2. A range of two times above and below average multiple.(2) Includes exchange-rate effects.To contact the author of this story: Anjani Trivedi at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Anjani Trivedi is a Bloomberg Opinion columnist covering industrial companies in Asia. She previously worked for the Wall Street Journal. For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
South Korean battery maker LG Chem Ltd said on Thursday it had signed an agreement to set up a joint venture with China's Geely Automobile Holdings Ltd to produce batteries for electric vehicles. The joint venture would have annual production capacity of 10 GWh by the end of 2021, and its products would be supplied to Geely's electric vehicles from 2022, LG Chem said in a statement. The two parties would invest $94 million each in the venture, LG Chem said in a statement.
Samsung initially agreed to deliver batteries for just over 20 gigawatt hours, enough to power 200,000 cars with 100 kilowatt hour packs, before different views on production volume and schedule emerged during detailed negotiations, said the people, who asked not to be identified as the talks are confidential. The impasse cut pledged supplies to less than 5 gigawatt hours, they said. Access to vast amounts of batteries to power a growing number of electric vehicles has emerged as a new battleground for global automakers amid capacity constraints, supply bottlenecks and limited access to raw materials.
SEOUL/BEIJING (Reuters) - Swedish carmaker Volvo said on Wednesday it had signed long-term battery supply deals with Asian firms LG Chem and Contemporary Amperex Technology Co Ltd (CATL), as it pushes its EV target of 50 percent of sales by 2025. The agreements follow a series of pacts between Asia-based battery companies and global carmakers, who are planning a $300 billion (232 billion pounds) surge in spending on electric vehicle (EV) technology over the decade. Long-term battery supply arrangements are much-valued by carmakers and investors, as they help to clear supply bottlenecks at a time of soaring demand and hold out the promise of cheaper batteries over time.