LG Energy Solution (LGES) debuted on the South Korean stock market on Thursday and quickly became the country's second most valuable company.
According to a report from Reuters, the electric vehicle battery maker that's based in South Korea closed at 505,000 won ($419.62) in local stock exchanges, which equates to 68% above the initial public offering price. Its overall market value is now at 118 trillion won (about $98 billion), making it second to Samsung Electronics Co. for most market value in South Korea.
LGES started on the market at 597,000 won ($496.39), which Reuters notes is almost double the price set in South Korea's biggest IPO ever, which was 300,000 won ($249.44.)
The company is responsible for approximately 23% of the global EV battery market and makes products for companies like Tesla, General Motors, Volkswagen, and more. TechCrunch notes that the company has plans to increase production in global markets and form more partnerships with automakers in the US, Europe, and China.
In the US, the company had to cover part of the cost of General Motors' October recall of its Bolt EV model. LG Energy manufactured the batteries used in the vehicle, and reports said that the car model was prone to catching on fire due to faulty batteries.
LG Energy's impressive market debut could be attributed to the growing global interest in EVs and the companies that provide their parts. According to a recent forecast from Gartner, six million electric vehicles (including battery and plug-in hybrid models) are expected to ship worldwide in 2022. This is a two million unit increase from 2021's four million globally shipped EVs.
This growing trend is expected to continue, as Gartner also predicts that EV shipments will "increase... to reach 36 million units by 2030.