South Korea-based LG Energy Solution (LGES) and SK On are now among the top-5 electric vehicle (EV) battery makers in the world, according to data collected from January to October this year. The two rivals are both raising production capacity and looking at prospective forecasts for next year.

LGES, a subsidiary of LG Chem, is raising production capacity from 170GWh currently to 280GWh by 2023 and 420GWh by 2025; capacity in the US is expected to increase to 150GWh by 2025, according to Korean local news outlets Maeil Business News Korea and Ddaily. Investment in the US amounts to KRW5.6 trillion, which will be partially distributed to expanding Ultium Cells, a jointly-owned subsidiary with General Motors in the US.

Planning to IPO in January 2022, LGES is investing KRW10 trillion to expand capacity, set up new production lines, develop advanced battery tech such as lithium-sulfur battery, solid-state battery, and provide BaaS in the future.

LGES planned to go public this year but the IPO was delayed by a recall of GM Bolt due to fire hazards.

In 2019, LGES sued rival SK Innovation (SKI, from which SK On has been spun off) for allegedly stealing patent secret. Both parties settled the case earlier this year with SKI paying KRW1 trillion in cash and another KRW1 trillion for patent licening.

SK On is still looking at promising earnings growth for next year. Having just reported an operating loss of KRW373.3 billion for the third quarter this year, SK On aims to bring revenue to KRW6 trillion next year and turn profitable.

For the first 10 months this year, LGES held about 21% of share of the global EV battery market, and SK On had about 5.8%. Another South Korean battery maker Samsung SDI, who is working closely with Stellantis and plans to invest KRW2 trillion in the US, had about 4.6% global market share, according to SNE Research figures, as cited by Ddaily.

Compared to Chinese battery makers' total market share of 43.2% in that period of time, South Korean battery makers lost about 4.5pp in market share. All are eyeing the US market for 2022 – SK On working with Ford and LGES working with Hyundai and Stellantis.

LGES's market valuation is expected to reach KRW75-80 trillion after IPO, while SK On said it is looking for pre-IPO investors and aims to raise KRW3 trillion. The fund will be used in expanding its overseas factories.