On Thursday, South Korea’s LG Chem said, it plans on making its battery business as a separate business entity. The company supplies electric car batteries to Tesla Inc and General Motors.
By separating its battery making business, which will be wholly owned by LG Chem, the company seeks to “strengthen the expertise and market dominance” by focusing on the battery business, said the company in a statement.
During the last quarter, LG Chem posted an operating profit in its car battery business and expects to heightened profitability on the back of increase demand from European car makers. It is also seeing an increase in demand for cylindrical batteries, used in Tesla cars.
LG Chem said, it will consider a stock market listing for its battery unit.