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LGES outlines ambitious future vision

Published: 22 Oct. 2024, 16:50

LG Energy Solution’s CEO Kim Dong-myung presents the company’s vision and mid-to-long-term strategy at the company’s vision-sharing meeting. [LG ENERGY SOLUTION]

LG Energy Solution (LGES) has announced "Empower Every Possibility" as its corporate vision, reflecting the battery maker’s ambition to go beyond battery manufacturing and play a core role in the “energy flow ecosystem.”

The vision also aligns with its goal of being a total solutions provider, offering hardware alongside software and services.

"Our vision embodies LG Energy Solution’s ultimate goal — to enable sustainable growth," said LGES CEO Kim Dong-myung. "Our new vision means that by expanding our business to energy solutions utilizing all potential power, we allow our company and its members to unleash unlimited potential growth."

"With our DNA of success, built on countless challenges and shining outcomes, we will create more business opportunities to attain unrivaled technological leadership in the market."

Under the new vision, LGES aims to double sales and stabilize its profitability and cash generation capacity by 2028.

The company outlined its mid-to-long-term strategies for achieving this five-year goal. First, the company will seek to secure a balanced business portfolio by expanding its non-EV businesses. LGES plans to reduce its dependence on the EV battery business and increase its focus on the energy storage system (ESS) business. Furthermore, the company will concentrate on new applications with high growth potential, such as urban air mobility (UAM), vessels and robotics.

Second, LGES will diversify its EV products and customers. In addition to premium batteries centered on high-nickel chemistry, the company will improve its competitiveness in more affordable markets through its lithium-ion phosphate (LFP) and high-voltage mid-nickel products. Additionally, LGES plans to expand its cylindrical battery customer portfolio to include traditional automakers, leveraging its 46-series.

Third, the company intends to expand its software and service businesses. Beyond its battery management systems (BMS), LGES will offer services such as battery leasing, rental and recycling to establish a comprehensive battery-as-a-service (BaaS) ecosystem.

Finally, LGES will focus on securing leadership in next-generation battery technologies to drive further innovation. Regarding solid-state batteries, the company plans to lead the market with anodeless products that exclude lithium anodes and graphite-based anode products.

LGES will also strengthen its business structure with specific strategies for each business division, including its advanced automotive battery, mobility & IT battery and ESS battery businesses. For the advanced automotive battery division, the company has set a mid-to-long-term goal of securing the top position in North America and reinforcing its foothold in Europe. Meanwhile, the mobility & IT battery division aims to cement its current position as the global market leader and widen its lead by 2028. The ESS division is targeting a five-fold revenue increase by 2028.

"We have established global standards in the battery industry and plan to maintain our leadership," said Kim. "I am confident that if we support each other as pace-setters and join hands, our long journey will lead us to more astonishing achievements and a brighter future."

BY KIM YEONSOO [[email protected]]

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