LG Group will be a good partner for Apple’s cars, the analyst said | Jobs Vox

(Bloomberg) — South Korea’s LG Group, which includes companies ranging from electric car battery makers to consumer electronics companies, would be a good partner for Apple Inc as the U.S. tech giant tries to build its own clean and smart cars. An analyst at KB Securities Co. wrote in a note on Friday.

“If Apple plans to sell a new car in 2026, it should start building its EV supply chain next year,” Kim Dong-won wrote earlier this month, citing a Bloomberg report that Apple had scaled back its own ambitious targets. drive plans, pushing back the car’s launch date by about a year, people with knowledge of the matter said.

Read more: Apple downsizes self-driving car, delays debut until 2026

“Partnership with LG Group, which has a full range of EV components, is possible,” Kim said.

KB Securities’ comments came after local media reported Thursday that Apple had proposed a partnership with LG Group, and that LG Group had begun building an internal team to work on any collaborations, including cellphone maker LG Energy Solution Ltd. and auto parts maker LG. reported. Electronics Inc. and camera module maker LG Innotek Co. No one was named in the report.

A spokesperson for the LG Group said the information was not true and did not provide further details.

There have been speculations in the past about whether Apple could work with LG. In 2021, LG Electronics formed a joint venture with Canada’s Magna International Inc. to produce electric car components, while LG Energy Solutions produces batteries for Tesla Inc. and General Motors. LG Innotek and LG Display Co. is one of the suppliers of Apple’s iPhone and Bloomberg. display data.

The South Korean conglomerate is seeking to become a “complete OEM solution” by supplying a variety of components, Kim said, adding that Apple is expected to sell not only cars but also subscription and platform services.

“Apple’s smartphone growth is slowing, raising expectations that it might develop an electric car,” Kim wrote. “If so, LG Energy, LG Electronics, LG Innotek and LG Display can benefit from it.”

Shares of LG Electronics rose 1.1% in Seoul on Friday, while shares of LG Energy Solution fell 2.8%.

©2022 Bloomberg LP

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