[Featured Stocks] Volkswagen's Bombshell Declaration... LG Chem and SK Innovation Plunge

[Asia Economy Reporter Ji Yeon-jin] LG Chem and SK Innovation are sharply declining in the stock market on the 16th. The stock prices are falling as Volkswagen declared it will replace its main batteries with parts made by Chinese companies.

As of 11:03 AM on the same day, LG Chem is trading at 899,000 KRW, down 6.83% from the previous day. Although it closed with a 2.33% rise the day before, Volkswagen's announcement during its Power Day event overnight to replace its main batteries caused a decline from the early trading hours.

At the same time, SK Innovation is recording 216,000 KRW, down 5.25% from the previous day. SK Innovation had already dropped 5.77% the day before after news spread that its competitor LG Energy Solution expressed intentions to build a battery factory in the U.S. or acquire SK's factory.

Earlier, Volkswagen announced that it will adopt prismatic batteries, which are the core components primarily produced by Chinese CATL and its own invested company Northvolt, as the mid-to-long-term key parts for its electric vehicles. This means increasing the installation of prismatic batteries from Chinese CATL and Northvolt instead of the pouch-type batteries from LG Energy Solution and SK Innovation that had been mainly used.

Meanwhile, the market expected Samsung SDI, which produces prismatic batteries, to benefit, but on this day, Samsung SDI stock price also fell by 2.62%.

This content was produced with the assistance of AI translation services.