How to buy LG Energy Solution Stock [2023]

Video how to invest in lg

Summary: LG Energy Solution is a South-Korean battery company publicly listed only on the Korea Exchange. As a result, the easiest way for investors outside of Korea to invest in LG Energy Solution is to buy shares of ETFs with exposure to the company or buy LG Display stock, which is publicly traded on the NYSE. To access such assets, you’ll need to sign up with a regulated broker like eToro.

About LG Energy Solution

How to buy LG Energy Solution Stock [2023]
LG Energy Solution’s homepage. Source: Lgensol.com

LGES went public in January 2022, raising $10.8 billion in one of South Korea’s biggest initial public offerings (IPOs).

As of June 2023, the company is South Korea’s third most-valuable company after Samsung Electronics and SK Hynix Inc.

LG Energy Solution serves as a supplier for several notable automakers, including industry behemoths like Tesla (NASDAQ: TSLA), General Motors (NYSE: GM), and Volkswagen (FWB: VOW), among others.

LG Energy Solution stock

LG Energy Solution trades on the Korea Exchange (KRX) under 373220. Please be aware that LG Energy Solution is not listed on any US or global stock exchange in the form of American depositary receipts (ADRs) or global depositary receipts (GDRs).

As a result, the most straightforward and cost-efficient way for investors worldwide to invest in LG Energy Solution is by purchasing shares in an exchange-traded fund (ETF) that focuses on South Korean stocks,battery technologies, and electric vehicles.

However, while this is the most practical way of gaining exposure to LG Energy Solution, you must be comfortable investing in a portfolio that includes other companies as well.

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Examples of ETFs that track the South Korean market and have exposure to LG Energy Solution include iShares MSCI South Korea ETF (NYSE: EWY) and Franklin FTSE South Korea ETF (NYSE: FLKR). Both of these have slightly under 2% exposure to LG Energy Solution.

If you want more concentrated exposure to lithium battery technology, consider investing in an ETF tracking that sector, such as Global X Lithium & Battery Tech ETF (NYSE: LIT), of which LG Energy Solution constitutes 3.37%.

How to buy LG Energy Solution stock? Step-by-step process

In the following segment, we present a comprehensive step-by-step guide to investing in your chosen ETF (with exposure to LG Energy Solution), as well as provide our recommendation for an online broker you may want to consider.

Step 1: Choose a broker

When assessing brokers, consider these factors:

  • Product listings: Verify that the broker provides access to your desired asset;
  • Pricing: Look for a broker that offers commission-free stock trading;
  • Regulation: Ensure the broker is regulated by the relevant financial authorities. In the US, for example, brokers should be registered with the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC);
  • Security: Confirm the platform has implemented strong cybersecurity measures to protect your data and funds;
  • Fractional shares: Fractional shares allow investors to buy stocks or ETFs according to a specific dollar value, which is particularly useful for investors with limited capital or those intending to implement a dollar-cost averaging (DCA) strategy.

For a secure investment in LG Energy Solution, we suggest using eToro, which offers:

  • Commission-free stock and ETF trading;
  • 2,000+ stocks from 17 exchanges;
  • Fractional shares available;
  • User-friendly platform.
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Step 2: Open and fund your account

Once you’ve chosen a broker that aligns with your investment needs and requirements, the next step is to create an account with them. Once registered, you can then fund your account. The funding process varies by broker but typically involves transferring money from your bank account to your brokerage account and can be done by bank transfers, debit or credit card transactions, or a third-party payment service such as PayPal (PYPL).

Step 3: Place your order

Now that your account is funded, you can place an order. To do so, follow these steps:

  • Navigate to the security’s detail page: Search for the ETF you want to invest in by using its ticker symbol;
  • Choose order execution type: Decide between a market order (buy or sell immediately at the best available price) or a limit order (buy or sell at a specific price or better);
  • Determine quantity: Decide the number of shares or dollar amount you want to buy;
  • Review and submit: Review all the details before placing the order to confirm their accuracy. Once you’re satisfied, submit the order to your broker for execution.

Step 4: Monitor your investment

It’s essential to periodically review your investment strategy, fine-tuning it as required in response to changes in your financial circumstances, risk tolerance, or market dynamics.

It’s equally important to understand that while vigilance over your investments holds value, reacting impulsively to temporary market movements can be counterproductive. At its heart, investing is a game of patience, often rewarding those who exhibit long-term fortitude. Plus, frequent buying and selling can lead to higher transaction costs and potential tax implications.

Are lithium batteries a good stock investment?

The accelerating transition to a low-carbon economy and increasing EV sales have many investors feeling optimistic about companies involved with the raw material. That said, an investment in the lithium battery industry depends on several factors, including:

  • Technological advancements: The pace of technological innovation in the lithium battery sector and the potential emergence of superior or competing technologies should be considered;
  • Company fundamentals: Like any investment, it’s crucial to examine the fundamentals of the specific companies you want to invest in, such as profitability, revenue, and growth potential;
  • Regulatory environment: Government policies can have a significant impact on the lithium battery industry. Regulations promoting EVs or renewable energy can boost the sector, while those concerning the environmental effects of lithium mining can create challenges;
  • Supply chain: Look at the stability and ethical implications of the company’s supply chain. This includes the sourcing of lithium and the environmental and social impact of its extraction;
  • Market volatility: Be prepared for price volatility. Commodity prices, such as lithium, can fluctuate due to factors like supply-demand imbalances, geopolitical issues, and economic conditions;
  • Ethics: Environmental, social, and governance (ESG) factors are increasingly important to investors. Check how the monetary return of potential investments fares in terms of their community impact.
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In conclusion

In short, to buy LG Energy Solution stock, follow these four steps:

  1. Select a broker;
  2. Sign up and deposit funds;
  3. Buy shares of an ETF with exposure to LG Energy Solution or invest indirectly by buying shares of LG Display;
  4. Periodically review your position.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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