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LGES to Invest $3bn in US Battery Plant
LG Energy Solution (LGES) [373220.KS] has announced it will provide lithium-ion batteries for Toyota’s [7203.T] US-made electric vehicles (EVs). Taking advantage of Inflation Reduction Act subsidies, LGES will invest $3bn in its Michigan factory, from which it will supply the Toyota plant in Kentucky, beginning 2025. Once this operation comes online, LGES will be supplying EV batteries to five leading automakers — among them Stellantis [STLA] and Hyundai [005380.KS] — from its US facilities.
Are Chinese EV Makers a Threat?
Volvo [VOLV-B.ST] sales were up 25% year-on-year in September. The Geely [0175.HK] majority-owned carmaker said Thursday that US sales grew by 65%, followed by Europe (32%) and China (4%). Rivian [RIVN] is planning to sell convertible green bonds worth $1.5bn, which will mature in October 2030. The New York Times reported that China’s Nio [NIO] loses $35,000 for every car it makes, yet calls it a threat to “traditional auto powers in Europe and the US”.
UK Watchdog Eyes Amazon, Microsoft
The Competition and Markets Authority, the UK’s antitrust watchdog, is to investigate Amazon [AMZN] and Microsoft [MSFT] over cloud infrastructure. This comes after an investigation by telecoms regulator Ofcom found evidence that the two make it hard for customers to switch supplier. Elsewhere Belgium’s intelligence service has been monitoring the principal European logistics hub of Alibaba [BABA] in Liège, over “possible espionage and/or interference activities”, officials told the Financial Times.
IPO for Blackberry IoT Unit
BlackBerry [BB.TO] is to spin off its Internet of Things division from its broader cybersecurity business in an IPO next year, the company said on Wednesday; the announcement pushed its share price up 5% in late trading. In Seoul, the IPO of Doosan Robotics [000155.KS] almost doubled on its debut. The stock closed its first day up 98%, after an intraday peak of 160%. South Korea is the world’s leading adopter of robotics, according to Bloomberg.
Novo Nordisk’s Sore Back
At $403bn, Novo Nordisk [NOVO-B.CO] is worth more than the GDP of Denmark. Its recent success is a key factor behind the Danish government’s recent decision to bump the economic growth forecast for the year to 1.2% from 0.6%. In the US, Walmart [WMT] has said that people are buying less food due to the company’s Ozempic/Wegovy appetite-suppressing medication. The US Patent Office says it will be reviewing the validity of one of Novo Nordisk’s patents related to the drugs.
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