Guinness Sustainable Energy Fund on LG Chem
Thesis
The fund owns LG Chem for exposure to lithium-ion batteries and the electrification of transportation. The company is described as one of the world's largest lithium-ion battery manufacturers, giving it direct participation in the expected expansion of the global EV fleet. The broader thesis is that EV penetration should rise materially through the end of the decade, supporting demand for battery capacity and related materials.
“one of the largest lithium-ion battery manufacturers in the world”
Key risks
- EV adoption can be slower than expected
- Battery manufacturing is exposed to competitive pricing and capacity cycles