The South Korea-based organisation anticipates a further increase in its battery sales and profit during the fourth quarter after posting record quarterly earnings due to the surging demand for electric vehicle (EV) batteries.

In a press release, Dong Seok Cha, CFO at LG Chem, commented: “It’s the result of our effort focusing on core tasks such as improving efficiency, stable cash flow management and continuing investments for the future from the beginning of the year despite COVID-19.”

“Performance improvement such as growth in sales and an expansion in profits in the future will continue.”

Sales increased by 8.2% and operating profits rose by 57.8% in comparison to the previous quarter. Compared with the same quarter of the previous year, it was found that sales increased by 8.8% and operating profits rose by 158.7%. In regard to operating profits, it has revised its highest quarter record approximately in 10 years.

LG Chem, in tandem with CATL, supplies batteries for Tesla’s made-in China models, while Panasonic manufactures batteries for Tesla’s US-made cars. LG Chem confirmed it was developing a “new form-factor” cylindrical batteries which will boost energy density five-fold and power by six-fold without elaborating.

The launch of a new model of electric automobile by European clients, an increase in sales of cylindrical batteries and an expanded supply of IT products made it possible to achieve the highest performance ever. In Q4, it is predicted that sales will grow and profitability will improve through an expanded supply of IT products to make it possible to achieve the highest performance ever.