LG Energy Solution's stock rose nearly 8% during trading on the 26th. LG Group Chairman Koo Kwang-mo's expressed intent to grow the battery business appears to have stimulated investor sentiment.
LG Energy Solution shares traded at 361,000 won in the KOSPI market at 1:42 p.m. on the same day. The stock price increased by 7.6% (25,500 won) compared to the previous day. During trading, the stock price even surged to 365,000 won.
Chairman Koo noted during the written remarks at the LG regular shareholder meeting, “Industries like battery are essential core industries for the future of the nation and will undoubtedly grow as the group's key business.” He added, “We will continuously devise innovative measures in next-generation batteries and process technologies to overcome market and technological challenges.”
LG Energy Solution's collaboration with Delta Electronics to target the U.S. residential energy storage system (ESS) market also had a positive impact. LG Energy Solution plans to supply residential ESS batteries totaling 4 gigawatt-hours (GWh) to Delta Electronics over five years by 2030. Four gigawatt-hours is enough for about 400,000 dwellings to use for a day based on a household size of four.
LG Energy Solution's stock price has been below the 400,000 won mark since November of last year due to concerns about electric vehicle chasm (temporary demand stagnation). Securities companies maintain an optimistic outlook on LG Energy Solution. According to financial information provider FnGuide, nine securities firms that disclosed investment opinions on LG Energy Solution this month suggested an average target price of 437,000 won.