LG Chem Ltd. announced that it has resolved a corporate spin-off plan focused on its battery business to raise corporate and stockholder value.

The company said the new business, to be launched in December, aims to achieve a revenue of 30 trillion won ($25.5 billion) or more in 2024, from an expected revenue of 13 trillion won this year.

The new wholly owned subsidiary, tentatively named LG Energy Solutions, will include LG Chem's small batteries used in smartphones and laptops and its energy storage systems, as well as its vehicle batteries.

"This is the right time for the spinoff as the battery industry is growing rapidly and profits from the EV battery sector are increasing," said the company in a press release. "With the spinoff we can focus on a specialized business sector as well as improve efficiency in management, boosting values for the company and shareholders."

This will be a physical division in which LG Chem will possess all of the stocks issued by the new battery corporation and LG Chem will possess 100% of the non-listed shares of the new corporation.

Regarding this corporate spin-off, LG Chem said: “The corporate spin-off will make it possible to focus on the specialized business areas and enhance management efficiency, thereby upgrading corporate value and stockholder value.”

Regarding the physical division method that will be used, it was stated, “Improved corporate value through the growth of the new corporation will also have a positive impact on the mother company, and we also considered the advantages from the synergy effects of the two companies such as R&D cooperation as well as association of battery materials businesses such as anode materials.”

LG Chem is a leading player in the EV battery market, accounting for one-quarter of market share. The company supplies many global automakers including Hyundai Motor, Kia Motors, GM, Ford, Volkswagen, Renault and Volvo.