Tesla, GM EV Battery Supplier LG Energy Poised to Price IPO At Top of Range: Report

General Motors Co's GM South Korean battery supplier LG Energy Solution is expected to price its shares at the top of the marketed range in the upcoming listing, Bloomberg reported, citing people familiar with the matter.

What Happened: LG Energy, which also supplies batteries to Tesla Inc TSLA and Ford Motor Co F, is issuing 34 million shares in a price range of KRW 257,000 to KRW 300,000 ($214 to $250).

The listing is scheduled to take place on Jan. 27 and is the biggest in the country.

The final price is expected to be announced on Friday, the report noted.

LG Energy is a wholly-owned subsidiary of South Korean chemical company LG Chem.

See Also: How Electric Vehicle Battery Trends Could Shape Up In 2022

Why It Matters: The heavy-weight IPO follows LG Energy’s decision to pay GM $1.2 billion over the legacy automaker’s Chevrolet Bolt EV and Bolt EUV recall last year.

Asian battery makers that currently dominate the market for electric vehicles have been expanding their presence in China, the U.S. and Europe as automakers rush to secure supply chains. 

China’s CATL is the global frontrunner in battery making for electric vehicles followed by LG Energy and Japan’s Panasonic.

The growing demand for batteries has also pushed up prices for lithium and cobalt — key ingredients using in making electric vehicle batteries— and some automakers are worried there may not be enough supplies in the coming years.

See Also: Elon Musk Says Batteries Will Be As Crucial To Transport As Oil Is Today

Tesla, the global EV leader, relies on multiple battery partners. Both GM and Ford Motor Co F are building their own capabilities as well — besides having partnerships and factories for making batteries for their future electric vehicle lineup.