S. Korean batteries, solar panels rally after Biden victory
Shares of South Korean battery makers and renewable energy suppliers got a fresh boost Monday as investors bet on Joe Biden's win in the U.S. presidential election with clean energy pledges.
Biden's green energy plan includes significant investments in charging infrastructure for electric vehicles (EVs) and updating government vehicle fleets to EVs to ramp up demand, which is a boon for rechargeable batteries.
"The new U.S. administration's eco-friendly policy is expected to benefit green energy, utility and eco-friendly mobility sectors, giving bullish signals for their shares," Paik Chan-gyu, an analyst at Korea Investment & Securities, said.
LG Chem Ltd., the world's leading battery maker, gained 1.94 percent to 734,000 won (US$658.95) on the Seoul bourse, the highest level since Sept. 4.
LG Chem, which supplies batteries to Tesla and General Motors, plans to spin off its battery business on Dec. 1.
Its two local rivals also traded bullish in the main KOSPI market.
Samsung SDI Co., Samsung's battery-making unit, jumped 6.81 percent to 533,000, and SK Innovation Co. shot up 10.95 percent to 157,000 won.
LG Chem operates an EV battery plant in Michigan and began constructing its second plant in Ohio earlier this year in a joint venture with American automaker General Motors.
SK Innovation is also building two plants in Georgia, with the first plant currently on track to begin mass-producing EV batteries in 2022.
Renewable energy companies, such as solar cell and hydrogen energy, also advanced on hopes for increased demand in the U.S under the president-elect's ambitious climate plan.
Biden has vowed to bring U.S. emissions down to net zero by 2050, including by bringing emissions from the power industry to net zero by 2035.
Hanwha Solutions Corp., a local solar cell company, soared 8.98 percent to 52,200 won, and Doosan Fuel Cell, a hydrogen energy provider under Doosan Group, rose 1.31 percent to 42,500 won.