<article><p class="lead">South Korean battery producer LG Energy Solution (LGES) has raised $1bn through its first global green bond issue, which it plans to use to accelerate its investment in battery production facilities.</p><p>The $1bn global green bonds consist of a $400mn three-year bond and a $600mn five-year bond, according to LGES on 19 September. The three-year bond was issued at 100 basis points above the yield of US three-year Treasury notes, with the five-year bond being issued at 130 basis points above the yield of US five-year Treasury notes.</p><p>The firm in 2022 invested 6.3 trillion won ($4.76bn) in its battery production facilities globally and it plans to use the proceeds to further invest, it said. LGES in January said it <a href="https://metals.argusmedia.com/newsandanalysis/article/2413674">aims to raise sales</a> by 25-30pc this year and increase investment in production by over 50pc. LGES in February <a href="https://metals.argusmedia.com/newsandanalysis/article/2422864">signed a non-binding preliminary agreement</a> with US auto manufacturer Ford and Turkish conglomerate Koc Holding to build an electric vehicle (EV) battery facility of at least 25 GWh/yr in Turkey.</p><p>The firm will also invest to expand its product portfolio in energy storage systems and EV batteries, it added. LGES in August <a href="https://metals.argusmedia.com/newsandanalysis/article/2477341">agreed to build</a> two facilities for battery pre-processing and recycling in China with major Chinese battery metals producer Huayou Cobalt, which are expected to start operations by the end of 2024.</p><p>The firm's EV battery installation during January-June was <a href="https://metals.argusmedia.com/newsandanalysis/article/2479203">up by 50pc from the previous year</a> to 44.1GWh, making it the largest EV battery installer outside China, according to South Korean market intelligence firm SNE Research.</p><p class="bylines">By Joseph Ho</p></article>
