South Korean EV battery stocks fall as Biden's exit news weighs

Posco Future M

22/07/2024 02:45

** Shares of South Korean electric vehicle (EV)
battery-related stocks fall following U.S. President Joe Biden's
decision to end his presidential reelection campaign 
    ** Shares of South Korean battery maker LG Energy Solution
(LGES)  373220.KS  fall as much as 3.5% and battery material
maker Posco Future M  003670.KS  drop as much as 4.3% 
    ** Biden's decision weighed as investors view that there are
more uncertainties concerning U.S. climate-related policies,
that also include EVs 
    ** Analysts also attributed the drop in shares to media
reports that LGES has suspended construction of its third
battery joint electric vehicle (EV) battery factory in Michigan
with General Motors  GM.N  due to slowing global EV demand
     ** "We are adjusting the pace of your investment, but the
construction is not being halted. While we cannot comment on
specific progresses for each factory, we are pursuing various
measures for flexible operations to respond to market
conditions," LGES said in a statement 
    ** Separately, LGES has paused a part of construction of its
multi-billion dollar battery factory in Arizona due to changing
environment of battery market 
    ** The broader market KOSPI  .KS11  was trading down 1.2%,
as of 0015 GMT 
    
    ($1 = 1,387.8300 won)

 (Reporting by Heekyong Yang)
 ((Heekyong.Yang@thomsonreuters.com;))