South Korean battery maker LG Energy Solution Ltd. said Tuesday it applied for preliminary approval to list its shares on the country's main stock market.

LG Energy, the wholly owned subsidiary of LG Chem Ltd., said in a regulatory filing that it submitted the application to bourse operator Korea Exchange, as it seeks an initial public offering within this year.

Market watchers said LG Energy may be able to raise around 10 trillion won ($8.9 billion) through the share sale, which is expected to be one of this year's mega IPOs. Its market value is estimated at up to 100 trillion won.

Earlier this year, the company picked KB Securities and Morgan Stanley as the lead managers for its IPO.

The company plans to use IPO proceeds to expand a facility investment to meet growing demand for batteries for electric vehicles.

LG Chem split off the battery unit in early December last year to grab a bigger chunk of the rising EV battery market under tightening environmental regulations.

LG Energy's IPO plan has drawn keen attention as the company is a major supplier of batteries for nearly all major global carmakers, including Tesla, General Motors, Ford, Renault, Volvo and Volkswagen, as well as South Korea's two largest automakers -- Hyundai Motor and Kia Corp.  

LG Energy Solution posted 13 trillion won in revenue in 2020 and aims to generate over 30 trillion won by 2024. The company has said it plans to more than double its EV battery production capacity to 260 gigawatt hours by 2023. (Yonhap)