Good News & Bad News, page-6917

Good read, thanks for sharing. This is actually a VERY important article if we analyse it closely.

This demerger is important for them cause it is obvious they need a lot more money to do what they want to achieve (not possible in current setup). The growth and cost is huge. But..... I think more importantly the split will allow them to raise funds and go out of LG Chem core and start making some serious investments and partnerships in this sector. That is the only way in hell that they will have any chance in getting access to the raw materials they need for all those planned batteries. All the experts are talking about and this article provides that missing link in understanding of the lack of action.

Therefore, my guess is once batteries are demerged get ready to see some deals happen with Aussie raw material suppliers. Right geography, stability and quality suited for LG. The article makes sense why this has not already started, but I think management see they can't wait any more as the risks of not making the investments now grow everyday.

This will be good as the Chinese companies will start to have a little competition and we know what that means..... higher prices willing to be paid resulting in higher valuations.

Once demerged watch this space as this sector will really start to heat up. Just getting more exciting by the day!