[Click eStock] LG Chem, LFP Batteries Are Sufficiently Attractive

[Asia Economy Reporter Hwang Junho] Hyundai Motor Securities positively evaluated the news that LG Chem is commercializing LFP (Lithium, Phosphate, Iron) battery development on the 30th, maintaining LG Chem's target stock price at 1.1 million KRW.

Hyundai Motor Securities noted that major automakers have announced plans to procure long-term batteries excluding cobalt, and while Chinese companies are diversifying from existing LFP to ternary and high-manganese batteries, it would be difficult for domestic companies to respond by staying with only one type. Additionally, they forecast that diversification into batteries such as high-manganese, which has recently become an issue, is necessary even if not LFP.

Regarding LG Chem's Q3 performance this year, although the battery segment is expected to be sluggish due to the vehicle semiconductor shortage issue, strong performance in the chemical sector is expected to result in better-than-consensus excellent results.

Researcher Kang Dongjin of Hyundai Motor Securities analyzed, "Although the stock price is sluggish due to uncertainties related to the GM recall, considering the continued strong performance of the chemical business and the long-term growth of the battery materials business, the valuation is sufficiently attractive."

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