South Korean battery company, LG Energy Solution Ltd. (LGES) stated on Tuesday that it has raised $1 billion from selling global green bonds, as part of its bid to promote green sources of energy.
The $1 billion bond includes a three-year bond of $400 million and a five-year bond of $600 million.Green bonds are debts that are sold in return for proceeds that will be used in green investments. LGES has already revealed that it intends to use the money gained from the sale to invest in global battery manufacturing sites. The investments made from the green bond proceeds will be used to increase electric vehicle (EV) production rates, and also expand energy storage systems (ESS).
LG Energy Solution Ltd is among the world’s largest battery companies, rivaling Panasonic, CATL, SK Innovation and Samsung SDI. The company also supplies batteries to Hyundai Motors Co., General Motors Co., and Tesla Inc.
As part of foreign expansion efforts, LGES has begun building new battery manufacturing facilities in the US as part of its foreign expansion plans. The battery company also intends to increase capital spending by 50% compared to last year.