South Korean battery supplier LG Chemicals is on track to report record quarterly results for the third quarter as the electric vehicle space shows ongoing momentum.
What Happened: LG Chemicals, which supplies EV batteries to Tesla Inc (NASDAQ:TSLA), said it expects to report a third-quarter operating profit of 902.084 billion won ($785.33 million), representing a 158.7% year-over-year increase, the company revealed in a filing with the South Korean stock exchange.
This compares to the 746-billion-won consensus forecast, Reuters reported, citing Refinitiv SmartEstimate.
Revenues climbed 8.8% year-over-year to 7.51 trillion won ($6.54 billion).
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Why It's Important: LG Chem's strong results in part reflect Tesla's third-quarter delivery numbers. The U.S. EV pioneer reported record third-quarter deliveries earlier this month.
Tesla is also reportedly looking to pick up a stake in LG Chem in a bid to secure battery supplies as the demand for EVs continues to surge.
Additionally, LG Chem may also have benefited from an increase in demand for home appliances as a result of the coronavirus pandemic. They're manufactured using petrochemicals supplied by the company, the Reuters report said.