LG Energy Solution Expansion Continues As EV Demand Softens

With a new expansion-minded CEO at the helm, the next two years will be quite busy for South Korean EV battery maker LG Energy Solution (LGES), with plenty of US capacity expansion and joint ventures on tap.

In what Korean media are calling a “generational shift,” LGES President Kim Dong-Myung was appointed CEO by the board of directors to replace Kwon Young-Soo, who served LG for 44 years.

Kim is a “chemical specialist who has been leading the aggressive overseas expansion in the burgeoning EV market in recent years,” The Korea Herald reported. He formerly headed the company’s advanced automotive battery division. He joined LGES, then a business unit of LG Chem, in 1998 to work at a battery research center. In 2020, that unit was spun off into LGES.

Changing of the guard

“The new CEO Kim Dong-Myung has a proven track record in the battery business and entrepreneurial success,” LGES said in a statement. “At a time like this, Kim is expected to show leadership in making LG Energy Solution the No. 1 global company.”

Kwon’s retirement “made headlines in the nation’s tech industry,” The Korea Times reported, “as he exuded massive influence in enhancing Korea’s global footing in the battery industry. He took office as the chief of the battery arm of LG Group back in November 2021, and stood at the forefront in listing the company on the main bourse and turning it into the nation’s second-most valuable firm by market capitalization.”

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In addition to naming Kim as the new CEO, the company tapped Choi Seung-Don, head of automotive battery R&D, as vice president.

New strategies for cooling demand

Reporting a 7.5% year-over-year revenue increase for its third quarter in October, as well as a 40.1% jump in profit, LGES is adjusting its strategy to cope with some expected cooling in EV demand — particularly in Europe and China. Nevertheless, the company said it is on track to “expedite the global EV transition,” with an annual production capacity of 200 gigawatt hours projected to expand to 300 gigawatt hours by the end of this year.

With demand for EVs remaining solid in North America, LGES plans to enhance product safety by advancing its thermal management technology by optimizing design and developing a cooling system for modules and packs. LGES also plans to improve its high-nickel NCMA batteries by including more than 90% nickel and achieving charging times of less than 15 minutes by using high-capacity, high-efficiency silicon anodes. The company is also enhancing production for the mid-to-low-end EV segment.

Related:LG Energy Solution's Lithium-ion Modules for Toyota's US EVs

Multiple US projects

On the larger operational scale, LGES has multiple projects in the works throughout the United States, including:

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In Asia, LGES is establishing a pilot production line for its 46-series cylindrical batteries in Ochang, Korea; production is expected to begin in the second half of 2024. Meanwhile, the company’s facility in Nanjing, China, will become the main production hub for 2170 cylindrical batteries.

“In response to constantly evolving and diversified market needs, we will secure differentiated production competitiveness across all segments, ranging from premium and mainstream to affordable,” said Kwon. “This will become our core engine for consistent mid- to long-term growth, upon which we will become a global leader providing the world-best value to our customers.”

EV Battery Leaders is a series of occasional features profiling the top makers of EV batteries worldwide.