Korea's FTC finds surge in M&As related to EV supply chain

South Korean companies have been active in M&As in electric vehicle (EV) related supply chain amid fast migration to green vehicles, according to latest M&A reviews with local antitrust authority.

According to the Fair Trade Commission (FTC) Wednesday, M&As on the EV front were mostly related to lithium-ion batteries, a key EV component, as Korean companies quickly responded to global market trend and needs.

A major deal was a 50:50 joint venture by Hyundai Motor Group and LG Energy Solution in Indonesia to produce and sell lithium-ion batteries for next-generation EVs.

The FTC approved the partnership in July last year on growing demand and competition.

The FTC also gave green light earlier this month to LG Chem purchasing 50 percent shares in Toray Hungary to expand its supply network of battery separators for EVs in Europe, citing small concern over limited competition.

Manufacturers of cathodes and anodes, a core material of lithium-ion battery, from Germany, Belgium, Japan, and China promoted M&As with raw material suppliers for technology partnership and stable raw material supply.

For overseas players, the local FTC granted venture between Chinese and Japanese commercial manufacturers upon finding little influence in the domestic market.

Chinese EV commercial manufacturing company BYD Auto and Japan’s Hino Motors under Toyota applied to set up a joint venture in China for commercial EV research and development and production.

The agency said that it has been moving quickly with reviews and grants on M&As with less threat to fair competition and business integrations aiding environment and overseas foray.

[ⓒ Maeil Business Newspaper & mk.co.kr, All rights reserved]