Tesla Motors Inc. (NASDAQ:TSLA) push to construct a $5 billion battery factory in Nevada is not of a concern to LG Chem, which is also closely eyeing the U.S. auto battery market. Tesla might have wreaked havoc with its ambitious plan, but LG Chem is remaining firm maintaining that any success in the space will be shared equally among all the players.
The popularity of electric vehicles in the past was limited by the high-prices of batteries that made the cars extremely expensive for the mass market. There is a belief in the space that things could turn out for the best as more companies continue to invest on developing cheaper batteries.
Tesla Motors Inc. (NASDAQ:TSLA) has already secured financing from Japan-based Panasonic as it seeks to accelerate the construction of its battery factory in Nevada. Ramping up production of batteries with the completion of the Gigafactory is expected to result in a reduction of costs for Tesla Motors Inc. (NASDAQ:TSLA)’s vehicles. LG Chem CEO, Prabhakar Patil, has already reiterated that Tesla won’t have an easy ride in acquiring market-share in the space.
LG Chem has already reiterated its desire to secure up to 25% of the total market share in the space by 2017. It awaits to be seen if LG Chem will be successful in this case as more players are expected to make a push for the same. The South Korean’s U.S division remains optimistic of achieving its goals after a number of automakers showed intention of partnering with it.
Competing against Tesla Motors Inc. (NASDAQ:TSLA) which has Panasonic on its side is expected to be a tall order for LG Chem, but competition in this case is expected to impact the overall costs of batteries. Tesla CEO, Elon Musk has already reiterated that the construction of the Gigafactory is expected to result in a 30% reduction of the overall lithium-ion-cells costs.
Andor Capital Management, run by Daniel Benton held 1.25 million shares worth $300.07 million at the end of the second quarter of 2014.
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