LG Energy Solutions, a supplier electric vehicle batteries to the likes of Tesla, Inc. (TSLA), will go ahead with its planned initial public offering later this year, according to local media reports.

What Happened: LG Energy, which was spun-off from South Korea's LG Chem in 2020, was originally planning a massive IPO on the South Korean stock exchange in October. The IPO plans were put on the backburner after U.S. auto giant General Motors Company (GM)  announced the recall of its Bolt EVs that are powered by LG Energy's batteries.

GM and LG Energy are now discussing the charges to be recorded for the recall, and the latter will announce this month its provisioning for the GM recall and the timeline for the launch of the IPO, Korea Times reported, citing sources.

The announcement could come as soon as Oct. 12, when LG Electronics releases its earnings, the report added. Incidentally, LG Electronics is the supplier of the battery modules housing batteries made by LG Energy.

Else at the latest, the disclosure could come Oct. 25, when LG Energy's parent LG Chem announces its financial results.

"Although the pre-listing review process was delayed due to uncertainties caused by the recall, the review process can be completed by year's end if LGES pushes forward to list the company this month," Korea Times said.

Why It's Important: Estimates put LG Energy's valuation at around 100 trillion won ($83.58 billion) and the company could raise as much as 10 trillion won from the IPO, potentially making it the biggest-ever listing in Korea, the report said.

LG Energy was the second-largest EV battery manufacturer in the world in the period between January and August, second only to China's CATL, the report said, citing SNE Research.

A public listing would provide LG Energy capital to expand manufacturing capacity and advance technology. This could help the company to close in on its gap with the market leader CATL.