SEOUL (Bloomberg) -- LG Chem Co. Ltd., South Korea's biggest chemicals maker, plans to spend 2 trillion won ($1.8 billion) on making electric-car batteries by 2013.
The chemicals maker has finished building a plant in Ochang, South Korea, that can supply lithium-ion batteries for 100,000 vehicles every year, LG Chem said in a regulatory filing on Wednesday. The plant is the world's largest by capacity, the company said.
LG Chem said it aims to get 2 trillion won in battery sales by 2013 and 4 trillion won by 2015. The company has signed supply deals with carmakers including Ford Motor Co., China-based Chongqing Changan Automobile Co. and Renault SA, and aims to capture 25 percent of the world's electric-car battery market within four years.
"Its efforts are starting to bear fruit after General Motors and other carmakers agreed to use its battery technology," said Hwang Kyu Won, an analyst at Tong Yang Investment Bank in Seoul, who maintains a buy recommendation on the stock. "Annual revenue from battery sales will increase, with LG Chem maintaining an edge in the global battery market."
The company is currently building a second plant in South Korea and a third in the U.S., with operations slated to begin in 2012. LG Chem said last year it may be able to supply batteries for 350,000 vehicles annually by 2013.
General Motors Vice Chairman Stephen Girsky, who attended the completion ceremony of the Ochang plant on Wednesday, said the U.S. carmaker plans to invest 4.8 trillion won in South Korea over the next three years. He didn't elaborate.