Tesla supplier LG Chem sees rising battery profit after record earnings
LG Chem, an electric battery supplier for Tesla and Volkswagen, on Wednesday forecast a further rise in its battery sales and profit in the fourth quarter thanks to growing demand for EV batteries.
The South Korean battery vendor and petrochemicals maker reported a 159% jump in its total operating profit to a record 902 billion won ($797 million) in the third quarter from a year earlier, in line with its earnings estimates.
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Its battery division, which also includes small batteries used in Apple's iPhones, saw operating profit more than double from a year earlier to 169 billion won, thanks to rising cylindrical battery sales, which are mainly supplied to Tesla's China-made cars.
(Also read | EV battery maker LG Chem in talks with carmakers)
New EV launches by European automakers and rising sales of new mobile devices also helped lifted its earnings.
Operating profit at LG Chem's mainstay petrochemical business more than doubled to 722 billion won during the period, as raw material costs fell and stay-at-home trends lifted demand for home appliances - one of the applications for petrochemicals products.